If an individual asset is increased, then
A) there must be an equal decrease in a specific liability.
B) there must be an equal decrease in equity.
C) there must be an equal decrease in another asset.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

If an individual asset is increased, it does not necessarily mean that there must be an equal decrease in a specific liability or equity. However, there must be an equal decrease in another asset in order to maintain the accounting equation (Assets = Liabilities + Equity).

If an Individual Asset Is Increased, Then