If a Transaction Causes a Liability Account to Increase, Which

question 42

Multiple Choice

If a transaction causes a liability account to increase, which of these related effects may also occur?

• A) An increase of an equal amount in an equity account.
• B) An increase of an equal amount in an asset account.
• C) A decrease of an equal amount in an asset account.
• D) An increase of an equal amount in another liability account.

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Definitions:

Pregnancy

The physiological condition of carrying one or more embryos or fetuses inside the womb of a female mammal, culminating in childbirth.

Longitudinal Studies

Research designs that involve repeated observations of the same variables (e.g., people) over short or long periods of time.

Age Differences

Variations in behavior, attitudes, and expectations often attributed to individuals being of different chronological ages.

Cohort Differences

Variations in the characteristics or experiences of individuals belonging to different age or generational groups.