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olchik [2.2K]
3 years ago
14

If total liabilities decreased by $30,000 and stockholders' equity decreased by $10,000 during a period of time, then total asse

ts must change by what amount and direction during that same period?
(A) $40,000 increase
(B) $20,000 decrease
(C) $40,000 decrease
(D) $20,000 increase
Business
1 answer:
boyakko [2]3 years ago
4 0

Answer:

C) $40.000 Decrease

Explanation:

The accounting equation states that: Assets = Liabilities + Equity, so in this case the Assets must decrease in the same amount that change the other side of the equation, $40.000.

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30 POINTS FOR BEST ANSWER!!!!
pochemuha
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