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    sabbycat's Avatar
    sabbycat Posts: 5, Reputation: 1
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    #1

    Jan 10, 2008, 08:44 PM
    About accounting
    If total assets decreased by $47,000 during a period and owner's equity increased by $24,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ________.

    $23,000 increase

    $47,000 decrease

    $71,000 decrease

    $71,000 increase


    I was thinking 23,000 increase, but I have no clue

    Any help
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 11, 2008, 10:10 AM
    The Decrease in Total Liabilities is $71,000

    $47,000 Decrease + 24,000 Increase = $71,000

    Remember that: Assets = Liabilities + Owners' Equity.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Jan 14, 2008, 04:37 PM
    I agree, a decrease of 71,000
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