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26 November, 22:05

If total assets decreased by $49,029 during a period of time and stockholders' equity increased by $27,095 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

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  1. 26 November, 23:56
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    The change in total liabilities of the period is decrease of $76,124

    Explanation:

    The change in total liabilities of the period is computed as using the accounting equation of the Accounts which is as:

    Assets = Liabilities + Stockholders' equity

    where

    Assets decrease so, it will be - $49,029

    Stockholders' equity increased so, it will be + $27,095

    So, putting the values above:

    -$49,029 = Liabilities + (+$27,095)

    Liabilities = - $27,095 - $49,029

    Liabilities = - $76,124

    Therefore, the change in the total liabilities is decrease of $76,124
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