and total Kl Question 6 of 25 sh-cards/ and total liabilities o sets must change

ID: 2408808 • Letter: A

Question

and total Kl Question 6 of 25 sh-cards/ and total liabilities o sets must change b eased by $60,000 at If total labalities increaseod by $27600 uring a peniod of time & stockholders' equity decreased by $108,000 during the same period, then the amount & direction of the peniod's change in total assets is let 1-flash-cards/ all law practice after b. S276,000 ncrease. change by what am C$168,000 increase 26,900 And St ounting questions a d $168,000 decrease equity increased by direction during the Oe. None of the above n Financial Man set turnover is... Now 631 PM 6/11/2018

Explanation / Answer

Answer is Option C – 168000 increase

Proof:

Balance sheet Equation: Asset= Equity + Liability

Assume Asset = 2000000

Equity = 1000000

Liability = 1000000

Asset

Equity

Liability

Current

2000000

1000000

Change in Question

+276000

-108000

After Change

*2168000

1276000

892000

*as per balance sheet equation asset = 1276000+892000 = 2168000

Before change asset total = 2000000

Change = 168000 increase