Any single event or transaction will have which of the following effect(s) on the balance sheet?
A)It increases an asset and increases either a liability or shareholders' equity.
B)It decreases an asset and decreases either a liability or shareholders' equity.
C)It increases one asset and decreases another asset.
D)It increases one liability or shareholders' equity and decreases another liability or shareholders' equity.
E)all of the above

Question

Quizplus · Accepted Answer

Any single event or transaction can have any of the above effects on the balance sheet depending on the nature of the event or transaction. It can result in an increase in an asset and an increase in either a liability or shareholders' equity, a decrease in an asset and a decrease in either a liability or shareholders' equity, an increase in one asset and a decrease in another asset, or an increase in one liability or shareholders' equity and a decrease in another liability or shareholders' equity. Therefore, option E, "all of the above," is the best choice.

Any Single Event or Transaction Will Have Which of the Following