Two or More Items Could Be Affected by a Transaction

question 120

Multiple Choice

Two or more items could be affected by a transaction. Which of the following statements is INCORRECT?

• A) An increase in an asset may result in a decrease in another asset.
• B) An increase in an asset may result in a decrease in an asset and increase in a liability.
• C) An increase in a liability may result in a decrease in an asset.
• D) An increase in a liability may result in a decrease in owner's equity.

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Definitions:

Attribution Theory

A theory focused on how individuals interpret and assign causes to others' behavior and their own.

Dispositional Attributions

Explaining someone's behavior by attributing it to their personality or character rather than to external factors.

Situational Factors

Refer to external influences that can impact an individual's behavior and decisions in a given context.

Achievement Attribution

The process of ascribing success or failure to personal or external factors.