An Individual Asset Has Increased

question 105

Multiple Choice

An individual asset has increased. Which of the following is possible?

• A)There is an equal decrease in owners' equity.
• B)Both liabilities and owners' equity decrease.
• C)There is an equal decrease in another asset.
• D)There is an equal decrease in a liability account.

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Definitions:

Cash Short And Over

An accounting term referring to a discrepancy between the amounts of cash available at the end of a period and the expected amount, which could be more (over) or less (short).

Office Supplies

Items such as pens, paper, staplers, and other materials used in an office setting for daily operations and not directly associated with the manufacturing process.

Bank Reconciliation

A process used to verify the accuracy of bank statements with a company's financial records, identifying any discrepancies.

Checks Outstanding

Checks that have been written and recorded in the check issuer's accounting system but have not yet been cashed or cleared by the bank.