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If total assets increased by $10,000 and total liabilities decreased by $6,000, then stockholders equity changed by what amount and direction during the period? 1.
If total assets increased by $10,000 and total liabilities decreased by $6,000, then stockholders equity changed by what amount and direction during the period?
1. increased by 4000
2. decreased by 16,000
3. Did not change
4. increased by 16,000
I know the answer is #4 but can you please explain I am a little confused as to why this is the answer. I would really like to know how to solve this. thank you.
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