If total assets decreased by $47,000 during a period of time 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:

a. $23,000 increase
b. $47,000 decrease
c. $71,000 decrease
d. $71,000 increase

The correct answer is C

Explanation:

The change in total liabilities is computed using the Accounting Equation as:

Accounting Equation of the Accounts is as:

Assets = Liabilities + Equity

where

The assets decrease by $47,000. So, it will negative

The equity increased by $24,000. So, it will be positive

So,

Putting the values above:

($47,000) = Liabilities + $24,000

($47,000) - $24,00 = Liabilities

Liabilities = - $71,000

Therefore, there is decrease in liabilities by the amount of $71,000

i just took the test and it is financing

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi