A Transaction That Increases an Asset Account and Decreases a Liability

question 59

True/False

A transaction that increases an asset account and decreases a liability account must also affect another account.

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Definitions:

GPS

Global Positioning System, a satellite-based navigation system that provides location and time information in all weather conditions.

Satellite Global Positioning System

A network of satellites that provide navigation data to military and civilian users around the globe, enabling users to determine their exact location.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, representing wear and tear, or obsoleteness.

Mortgage Bond

A bond secured by a mortgage on a property, where the bondholders have a claim on the property in case of default.