Which of These Effects of a Single Transaction on the Accounting

question 41

Multiple Choice

Which of these effects of a single transaction on the accounting equation is not possible?

• A) Increase in assets at the same time as an equal increase in equity.
• B) Decrease in assets at the same time as an equal decrease in liabilities.
• C) Increase in liabilities at the same time as an equal decrease in liabilities.
• D) Decrease in liabilities and at the same time an equal decrease in equity.

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Definitions:

Rigidity

The lack of flexibility or adaptability in processes, systems, or organizations that can hinder responsiveness and innovation.

Flexibility

The ability of a system, process, or entity to adapt to changes or demands without significant detriment or loss of functionality.

Consolidate Manufacturing

The process of centralizing or combining the production operations and facilities to improve efficiency and reduce costs.

Flexible Technology

Systems or equipment that can easily adapt to changes in production volume, design, or process, enhancing a company's ability to respond to market changes.