If total assets decreased by $47,000 during a period of time and stockholders' 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
48,357
To determine the amount and direction of the period's change in total liabilities, we can use the basic accounting equation, which states that:
Assets = Liabilities + Stockholders' Equity
We are given that total assets decreased by $47,000 and stockholders' equity increased by $24,000.
If total assets decreased, that means either liabilities or stockholders' equity must also decrease.
Since stockholders' equity increased, liabilities must have decreased.
To find the exact amount of the change in total liabilities, we need to calculate the difference between the decrease in total assets and the increase in stockholders' equity.
Change in total liabilities = Decrease in total assets - Increase in stockholders' equity
Change in total liabilities = $47,000 - $24,000
Change in total liabilities = $23,000
Therefore, the period's change in total liabilities is a decrease of $23,000.