If an Individual Asset Is Increased, Then

question 48

Multiple Choice

If an individual asset is increased, then

• A)there could be an equal decrease in a specific liability.
• B)there could be an equal decrease in shareholders' equity.
• C)there could be an equal decrease in another asset.
• D)none of these is possible.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with net income or loss.

Statement of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specified period.

Account Receivable

An Account Receivable is an asset account on the balance sheet that represents money owed to a company by customers for goods or services provided on credit.

Financial Statements

Written records that convey the business activities and financial performance of a company, including the balance sheet, income statement, and statement of cash flows.