Which of the Following Direct Effects on the Accounting Equation

question 117

Multiple Choice

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

• 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:

Standardized

Pertaining to a consistent procedure, method, or test that is applied uniformly to ensure comparability and repeatability.

Performance Improvement

A systematic approach to help increase the output, efficiency, or quality of work in an individual, group, or system.

Leniency Bias

A cognitive bias in performance appraisals, where the rater tends to evaluate employees more favorably than their performance justifies, often leading to skewed and unfair assessments.

Forced Distributions

A method of evaluating employees that requires raters to categorize employees.