If a Transaction Causes an Asset Account to Decrease, Which

question 67

Multiple Choice

If a transaction causes an asset account to decrease, which of the following related effects may occur?

• A) An increase of equal amount in an equity account.
• B) An increase in a liability account.
• C) An increase of equal amount in another asset account.
• D) An increase in the combined total of liabilities and equity.

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Definitions:

Chemotherapy

A medical treatment using drugs to kill or stop the growth of cancer cells.

Colon Cancer

A type of cancer that arises in the colon, the longest part of the large intestine, and can lead to significant health issues and requires medical intervention.

Gross Earnings

The total amount of money earned by an individual or business before any deductions or taxes are applied.

Payroll Process

The administrative operation involving the calculation of employees' salaries, withholdings, and deductions, as well as the distribution of their paychecks or electronic payments.