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 stockholders' equity.
C) there must be an equal decrease in another asset.
D) All of these answers are possible.

Question

Quizplus · Accepted Answer

If an individual asset is increased, there does not necessarily have to be any change in liabilities or stockholders' equity. The only requirement is that the balancing entry must be an equal increase in another asset. This is the basic principle of double-entry accounting.

If an Individual Asset Is Increased, Then