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Home > Business & Careers > Accounting   »   market value

 
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Old Oct 1, 2007, 03:06 PM
carisha
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market value

if total liabilities decreased by 25,000 during a period of time and owners equity increasesd by 30,000 during the same period what is the amount and direction of the periods change in total assets.

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Old Oct 1, 2007, 10:40 PM   #2  
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Example – Beginning of Year

Assets = Liabilities + OE

100,000 = 70,000 + 30,000


Example – End of Year
Assets ??? = [70,000-25,000] + [30,000+30,000]
Assets??? = 45,000 + 60,000
Assets = 105,000

Therefore Assets increased by 5,000
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