To Maintain Balance Sheet Equality, It Is Necessary to Report

question 87

Multiple Choice

To maintain balance sheet equality, it is necessary to report every event and transaction in a dual manner. If a transaction results in an increase in a Liability account, then which of the following must occur, to maintain the balance sheet equation?

• A)decrease another liability.
• B)decrease shareholders' equity.
• C)increase an asset.
• D)all of the above will maintain the balance sheet equation
• E)none of the above

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Definitions:

Pollutants

Substances that contaminate the environment, causing harm or discomfort to organisms.

Montreal Protocol

An international treaty designed to protect the ozone layer by phasing out the production of numerous substances responsible for ozone depletion.

Ozone-Destroying Chemicals

Substances, such as chlorofluorocarbons (CFCs), that break down the ozone layer in the stratosphere, leading to ozone depletion.

Ground-Level Ozone

A harmful air pollutant formed by the reaction of sunlight with pollutants such as nitrogen oxides and volatile organic compounds, contributing to smog and adverse health effects.