Which of the Following Is Not a Possible Effect on the Accounting

question 32

Multiple Choice

Which of the following is not a possible effect on the accounting equation from a single transaction of $1000?

• A) Assets increase by $1000; Equity increases by $1000.
• B) Assets decrease by $1000; Liabilities decrease by $1000.
• C) Liabilities increase by $1000; Liabilities decrease by $1000.
• D) Liabilities decrease by $1000; Equity decreases by $1000.

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