If a Transaction Increased an Asset of a Business

question 15

Multiple Choice

If a transaction increased an asset of a business. Which of the following can be an effect of the transaction for the accounting equation to balance?

• A)There is an equal decrease in another asset.
• B)There is an equal decrease in equity.
• C)There is an equal decrease in a liability account.
• D)Both liabilities and equity decreases.

---

Definitions:

Indifference Curves

Indifference curves represent combinations of goods or services that provide the same level of satisfaction to the consumer, illustrating consumer preferences and consumption choices.

Utility Levels

Refers to the subjective satisfaction or happiness that a consumer derives from consuming goods and services.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they have no preference for one bundle over another.

Oreos

Oreos are a popular brand of sandwich cookies consisting of two chocolate wafers with a sweet cream filling in between.