Which of the Following Describes the Effects of an Asset

question 71

Multiple Choice

Which of the following describes the effects of an asset use transaction on the accounting equation?
$\begin{array}{|c|c|c|c|c|c|}\hline & \text { Assets } & = & \text { Liab. } & + & \text { Equity } \\\hline \mathrm{A} & + & = & + & + & \text { NA } \\\hline \mathrm{B} & - & = & \mathrm{NA} & + & - \\\hline \mathrm{C} . & +- & = & \mathrm{NA} & + & \mathrm{NA} \\\hline \mathrm{D} . & \mathrm{NA} & = & + & + & \mathrm{NA} \\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Equity Method

The equity method is an accounting technique used to record investments in associate companies, where the investment is initially recognized and subsequently adjusted for the investor's share of the net profits or losses of the investee.

Intra-entity Transactions

Financial transactions that occur within the same legal entity, or between divisions within a single company.

Policy-making Process

A systematic series of actions taken to formulate, adopt, and implement policies within a governmental or organizational context.

Technological Dependency

Reliance on technology to perform daily activities or business operations, which can increase vulnerability to technological failures or cyber threats.