If the Transaction Causes an Asset Account to Decrease, Which

question 250

Multiple Choice

If the transaction causes an asset account to decrease, which of the following related effects may occur?

• A) An increase of equal amount in the common stock account.
• B) An increase in a liability account.
• C) An increase of equal amount in another asset account.
• D) An increase in the combined total of liabilities and stockholders' equity.

---

Definitions:

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible integers.

Percentage

A mathematical concept expressing a quantity as a fraction of 100.

Fraction

A mathematical concept where a number is represented as a part of a whole, expressed as a numerator divided by a denominator.

Roman Numeral

A system of numerical notation that uses the letters I, V, X, L, C, D, and M to represent numbers.