Which of the following can be an effect of a transaction that increased an asset of a corporation for the accounting equation to balance?
A) There is an equal decrease in another asset.
B) There is an equal decrease in equity.
C) There is an equal decrease in a liability account.
D) Both liabilities and equity decrease.

Question

Quizplus · Accepted Answer

When an asset increases, the accounting equation can balance by either decreasing another asset, increasing a liability, or increasing equity. An equal decrease in another asset would balance the equation.

Which of the Following Can Be an Effect of a Transaction