Match Each Transaction with Its Effect on the Accounting Equation

question 133

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Borrowed money from a bank

• A)Increase assets, increase liabilities
• B)Increase liabilities, decrease owner's equity
• C)Increase assets, increase owner's equity
• D)No effect
• E)Decrease assets, decrease liabilities
• F)Decrease assets, decrease owner's equity

---

Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Decision Problem

A situation that requires a choice to be made among different alternatives.

Leader

An individual who guides or directs a group towards achieving a common goal by influencing or motivating their behavior.

Shared Leadership

A leadership style where leadership roles and responsibilities are distributed within a team or organization rather than being held by a single leader.