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If the liabilities of a company increased by $55,000 during a month and the stockholders' equity decreased by $21,000 during that same month, did assets increase or decrease and by how much?

Respuesta :

TomShelby

Answer:

The assets should have increased by 34,000 during the same period.

Explanation:

Considering the accounting equation as follows:

Assets = Liabilities + Equity

and given the information that:

liabilities + 55,000

equity       - 21,000

net change in the right side:   34,000

[tex]assets = +55,000 - 21,000 \\assets = +34,000[/tex]

The assets should have increased by 34,000 during the same period.

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