For the Following Transaction, Identify the Type of Change That

question 19

Multiple Choice

For the following transaction, identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Share capital + Opening retained profits + Revenue - Expenses - Dividends
Inventory was purchased on credit.

• A) An asset increased and another asset decreased.
• B) An asset decreased and an expense increased.
• C) An asset decreased and a liability decreased.
• D) A liability increased and an asset increased.

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Definitions:

Organizational Development

Organizational Development is a field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Organizational Change

The process through which a company or organization undergoes transformation, involving major shifts in processes, culture, or strategy.

William Bridges

An author and consultant who developed a model of transition that focuses on the internal psychological process of adapting to new situations.

Continuity of Existence

The concept that an entity, idea, or system persists over time, maintaining its core identity or operations despite changes.