If an individual asset, in a proprietorship, is increased, then
A) there may be an equal decrease in a specific liability.
B) there may be an equal decrease in owner's equity.
C) there may be an equal decrease in another asset.
D) none of these is possible.

Question

Quizplus · Accepted Answer

In accounting, the accounting equation must always balance. If an asset increases, it can be offset by a decrease in another asset, an increase in a liability, or an increase in owner's equity.

If an Individual Asset, in a Proprietorship, Is Increased, Then