Which of the Following Can Be an Effect of a Transaction

question 58

Multiple Choice

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

Learn methods to handle unexpected situations and walk-in patients.

Comprehend the basics of planning and scheduling future appointments and events.

Understand the fundamentals of the accounting equation (Assets = Liabilities + Owner's Equity).

Identify components of the balance sheet (Assets, Liabilities, Owner's Equity).

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Definitions:

Statute of Frauds

The Statute of Frauds is a legal concept requiring certain types of contracts to be written down and signed by all parties involved to be enforceable.

Real Estate Sales Contracts

Legally binding agreements between a buyer and seller regarding the terms of sale for real estate property.

Enforceable

Refers to a legal agreement or obligation that can be upheld or compelled by a court.

Evidenced in Writing

Requirement for certain agreements to be recorded in written form in order to be legally enforceable.