Identify which one of the following statements is always true.
A) An increase in an asset account must decrease another asset account.
B) A decrease in an asset account must increase a liability or owners' equity account.
C) An increase in an asset account must increase a liability or owners' equity account.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

In accounting, an increase in an asset account can be offset by a decrease in another asset account, an increase in a liability, or an increase in owners' equity, depending on the transaction. Therefore, none of the given statements is always true.

Identify Which One of the Following Statements Is Always True