Which of the Following Direct Effects on the Accounting Equation

question 47

Multiple Choice

Which of the following direct effects on the accounting equation is not possible as a result of a single business transaction which impacts only two accounts?

• A)An increase in an asset and a decrease in another asset.
• B)An increase in an asset and an increase in stockholders' equity.
• C)A decrease in stockholders' equity and an increase in an asset.
• D)An increase in a liability and an increase in an asset.

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Definitions:

Compound Name

The systematic or common name given to a chemical substance based on its composition and structure.

Aromatic

Refers to organic compounds containing one or more planar rings of atoms that are stable due to resonance of bonding electrons.

Antiaromatic

A type of compound that is cyclic, planar, and conjugated, but does not follow Huckel's rule, having 4n π electrons which destabilize it.

Nonaromatic

A compound that does not contain a benzene-like ring and does not exhibit the stability typical of aromatic compounds.