Which of the Following Can Be an Effect of a Transaction

question 241

Multiple Choice

Which of the following can be an effect of a transaction that increased an asset of a sole proprietorship 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:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Breathing

The physiological process of inhaling oxygen and exhaling carbon dioxide, essential for life and cellular respiration.

Sodium Chloride

A chemical compound commonly known as salt, used in medical settings for electrolyte balance and as a component in saline solutions.

Microdrip Infusion Set

A device used for intravenous therapy that delivers small, precise volumes of fluid, typically used for medication administration.