If Total Liabilities Decreased By $49,600 And Stockholders' Equity Increased By $29,500 During A Period Of Time, Then Total Assets Must Change By What Amount And Direction During That Same Period?
The correct answer of this multiple choice question is (b). $20,100 decrease as decrease in total liabilities by $49,600 plus increase in Stockholders’ Equity or owner’s equity ($29,500) equal to $20,100 decrease in total assets during the same accounting period as shown from below Accounting Equation : Assets = Liabilities + Stockholders’ Equity Change In Total Assets = -$49,600 + (+$29,500) Change / Decrease In Total Assets = $20,100 Decrease So, total assets decreased by $20,100 when there are decrease in total liabilities of $49,600 and increase in Shareholders or Stockholders' Equity of $29,500 during the same period of time of the corporation's business.