31. The accounting equation can be expressed as Assets - Liabilities = Stockholders’ Equity.
32. The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders.
33. Stockholders’ rights to assets rank ahead of creditors' rights to assets.
34. If the liabilities owed by a business total $300,000 and stockholders’ equity is equal to $300,000, then the assets also total $300,000.
35. If total assets decreased by $30,000 during a specific period and stockholders’ equity decreased by $35,000 during the same period, the period's change in total liabilities was an $65,000 increase.
36. If the assets owned by a business total $250,000, and stockholders’ equity totals $200,000, liabilities total $50,000.
37. If the assets owned by a business total $75,000 and liabilities total $50,000, the total for stockholders’ equity is $125,000.
38. If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period, the period's change in total stockholders’ equity was a $200,000 increase.
39. If net income for a corporation was $60,000 and $20,000 in cash dividends were declared and distributed, then retained earnings would increase by $40,000.
40. If net income for a business was $180,000 and $20,000 in cash dividends were declared and distributed, then the retained earnings account would increase by $200,000.