Which of the Following Can Be an Effect of a Transaction

question 54

Multiple Choice

Which of the following can be an effect of a transaction that increased an asset of a corporation 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 decrease

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Definitions:

Unlimited Liability

Unlimited liability means that the owners of a business are personally responsible for the entire amount of debt and obligations of the business, potentially risking their personal assets.