Which of These Effects of a Single Transaction on the Accounting

question 41

Multiple Choice

Which of these effects of a single transaction on the accounting equation is not possible?

• A) Increase in assets at the same time as an equal increase in equity.
• B) Decrease in assets at the same time as an equal decrease in liabilities.
• C) Increase in liabilities at the same time as an equal decrease in liabilities.
• D) Decrease in liabilities and at the same time an equal decrease in equity.

---

Definitions:

Monthly Sales Report

A detailed document or summary that outlines the sales activity and performance of a business over a month.

Information

Data that has been processed, organized, or presented in a context that gives it meaning.

Central Questions

Fundamental or core inquiries around which a discourse or investigation is centered.

Inconvenience

A cause of trouble or difficulty that often results in discomfort or annoyance.