If an Individual Asset Is Increased, Then

question 81

Multiple Choice

If an individual asset is increased, then

• A) there may be an equal decrease in a specific liability.
• B) there may be an equal decrease in owner's equity.
• C) there may be an equal decrease in another asset.
• D) All of these answer choices are possible.

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Definitions:

Financial Lease

A type of lease in which the lessee assumes both the risks and rewards of ownership of the asset, typically for its entire useful life.

Lessor

The individual or entity that rents or leases their property or asset to another person, referred to as the lessee.

Operating Leases

Operating leases are contractual agreements in which the lessee pays to use an asset for a short period relative to the asset's life, without assuming the risks and rewards of ownership.

Cancellable

Refers to an agreement or contract that can be terminated or annulled by the involved parties.