An Expense Has What Effect on the Accounting Equation

question 168

Multiple Choice

An expense has what effect on the accounting equation?

• A)Decrease liabilities.
• B)Decrease stockholders' equity.
• C)Increase assets.
• D)No effect.

---

Definitions:

Fact Finding

Fact Finding is the process of gathering relevant information or data in order to establish truths, resolve disputes, or make informed decisions.

Personal Problems

Personal Problems refer to issues or challenges that affect an individual's mental, physical, or emotional well-being.

Lateral Thinking

A problem-solving approach that involves looking at the situation from different perspectives and using creative thinking to find unexpected solutions.

Vertical Thinking

A methodical process of problem-solving that focuses on depth and detail, often following a specific set of logical steps.