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If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is:_______.a. $17,000 increase b. $159,000 increase c. $88,000 decrease d. $159,000 decrease

Respuesta :

Answer:

The total liability will decrease by $159000

Explanation:

Below is the calculations:

Assets = Liabilities + Equity

Since the asset is the sum of liabilities and equity so the decrease in assets will be subtracted from the asset and an increase in the liability will be increased in the equity.

Assets = Liabilities + Equity

Assets - $88000 = (Liabilities-159000) + (Equity + 71000)

Assets - $88000 = (Liabilities + equity) - 88000

Thus the total liability will decrease by $159000

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