Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Suppose the assets of the Silver Lode Bank are $100,000 higher than on the previous day and its net worth is up $40,000. By how much and in what direction must its liabilities have changed from the day before

Sagot :

The liabilities must have declined by $60,000.

The accounting equation states that the assets of a company is equal the sum of the company's liabilities and net worth.

Assets = liabilities + net worth

Assets increased by $100,000 and net worth increased by $40,000. This can be put into the above equation

$100,000 = $40,000 + liabilities

$100,000 - $40,000 = liabilities

Liabilities = $60,000

A similar question was answered here: https://brainly.com/question/13278724