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if total liabilities increased by 97000 and stockholders equity increased by 31000 during a period of time then total asse

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If total liabilities increased by $97000 and stockholders' equity increased by $31000 during a period of time, then total assets must change by what amount and direction during that same period? • $159000 increase • $128000 increase • $128000 decrease • $190000 increase

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Answer to a math question If total liabilities increased by $97000 and stockholders' equity increased by $31000 during a period of time, then total assets must change by what amount and direction during that same period? • $159000 increase • $128000 increase • $128000 decrease • $190000 increase

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105 Answers

1. Apply the accounting equation:

\text{Assets} = \text{Liabilities} + \text{Stockholders' Equity}

2. Changes in the equation are written as:

\Delta \text{Assets} = \Delta \text{Liabilities} + \Delta \text{Stockholders' Equity}

3. Substitute the given values:

\Delta \text{Assets} = 97000 + 31000

4. Calculate the change in assets:

\Delta \text{Assets} = 128000

5. Therefore, the total assets increased by:

128000 \text{ increase}

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