A Company Disposes of $1 Million of Its Assets

question 12

Multiple Choice

A company disposes of $1 million of its assets.Which of the following could not be true about its effects on the basic accounting equation?

• A)Assets remain the same,and liabilities and shareholders' equity both decrease by $1 million.
• B)Assets decrease by $1 million,liabilities decrease by $1 million,and shareholders' equity is unchanged.
• C)Assets,liabilities,and shareholders' equity all remain the same.
• D)Assets decrease by $1 million,and liabilities and shareholders' equity both decrease by $500,000.

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