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:

Cultural Background

The cultural, social, and educational environment a person was raised in or identifies with.

Fundamental Attribution Error

is a cognitive bias where an individual underestimates situational factors and overestimates personal characteristics when explaining others' behaviors.

Internal Factors

Elements within an organization or individual that affect performance, decisions, and outcomes.

Role Conflicts

Situations where there are contradictory expectations or demands associated with a single role or between multiple roles held by an individual.