During September 2022, Blossom Diner's total liabilities decreased by $56000 and its stockholders' equity increased by $20000. The company's total assets must change by what amount and in what direction during that same period?

During September 2022, Blossom Diner's total liabilities decreased by $56000 and its stockholders' equity increased by $20000. The company's total assets must change by what amount and in what direction during that same period?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 10MCQ: Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income...

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Question

During September 2022, Blossom Diner's total liabilities decreased by $56000 and its stockholders' equity increased by $20000.
The company's total assets must change by what amount and in what direction during that same period?
O $36000 increase
O $56000 increase
O $76000 increase
O $36000 decrease

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