If a Transaction Causes an Asset Account to Decrease,which of the Following

question 25

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 owners' 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 owners' equity.

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Definitions:

Rational Model

A decision-making process that involves identifying a problem, generating alternative solutions, selecting the best option, and implementing it, assuming a logical and systematic approach.

Completely Rational

Refers to the assumption that individuals make decisions based on fully logical reasoning and have full information available to them.

Rational Model

A decision-making model based on logical and objective analysis of alternatives, aiming for the most optimal solution.

Inconsistent System

A framework or structure within which processes and practices frequently change, leading to confusion or inefficiency.