Which of the Following Direct Effects on the Accounting Equation

question 52

Multiple Choice

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

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

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Definitions:

Working Class

A social group consisting of people employed in lower tier jobs, often involving manual labor and receiving wages.

Employing Class

A term that represents the group of individuals or entities that hire or employ workers, typically used in discussions surrounding labor and economic dynamics.

Wage System

A method or structure for compensating employees based on hours worked, job role, or performance, among other factors.

Aggregated Wealth

The total market value of all financial and non-financial assets owned by a group or country, minus liabilities.