If Total Liabilities Decreased by $50,000 and Stockholders' Equity Increased

question 196

Multiple Choice

If total liabilities decreased by $50,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $40,000 decrease
• B) $40,000 increase
• C) $50,000 increase
• D) $60,000 increase