Which of the Following Can Be an Effect of a Transaction

question 221

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:

Controllable Margin

The portion of profit or cost that a manager has the power to directly control or influence through decisions and actions.

Labor Productivity

A measure of economic performance calculated by dividing the output of goods and services by the labor hours devoted to the production of that output.

Controllable Margin

The portion of profit or income generated by a business or department that can be directly controlled or influenced by management decisions.

Performance Evaluation

The process of assessing the performance of an employee, a department, or an organization against set objectives or criteria.