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:

Business Ethics

The study and examination of moral and ethical problems that may arise in a business environment.

Work Environment

The setting, conditions, and culture in which employees operate, significantly influencing their productivity and satisfaction.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Doing Business

Engaging in commercial, industrial, or professional activities with the goal of earning profits.