Basic Accounting Concepts: Assets, Liabilities, and Stockholders' Equity

What is the stockholders' equity when assets are $90,000 and liabilities are $37,250?

Stockholders' equity should equal $52,750.

What is the effect on the accounting equation when land purchased for $40,000 is sold for $95,000 in cash?

There is a $45,000 debit to assets and a $45,000 credit to accrued interest.

If total liabilities decrease by $45,000 and stockholders' equity increases by $47,250, what is the change in total assets?

Total assets increase by $2,250.

How do you calculate stockholders' equity from assets and liabilities?

Stockholders' equity = Assets - Liabilities.

What happens to total assets if liabilities decrease and equity increases?

Total assets will increase by the net amount of the changes in liabilities and equity.

What is the accounting equation?

Assets = Liabilities + Equity.