If total liabilities decreased by $24,119 during a period of time and stockholders' equity increased by $33,952 during the same period, the amount and direction (increase or decrease) of the periods change in total assets is a ___.

Question

Business

Emilee Schmidt

11 February, 13:23

If total liabilities decreased by $24,119 during a period of time and stockholders' equity increased by $33,952 during the same period, the amount and direction (increase or decrease) of the periods change in total assets is a ___.

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Answers (1)

Know the Answer?

Jason Brady · Answer 1

An increase of $9,833

Explanation:

The accounting equation defines the relationship between the elements of the balance sheet. These are the asset, liabilities and equity. It is given as

Assets = Liabilities + Equity

Given that total liabilities decreased by $24,119 during a period of time and stockholders' equity increased by $33,952 during the same period,

Effect on asset

= - $24,119 + $33,952

= + 9833

The amount and direction (increase) of the periods change in total assets is an increase of $9833.