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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