If an individual asset is increased, then A

Accounting May 21, 2021

If an individual asset is increased, then A. there must be an equal decrease in a specific liability. B. there must be an equal decrease in owner's equity. C. there must be an equal decrease in another asset. D. none of these is possible.

Expert Solution

Answer

C .

Explanation

As per the principal of accounting equation, whenever there is an increase in the asset It causes an equal decrease in the corresponding asset. For example, If a plant is purchased then cash decreases. So, the correct option is C "there must be an equal decrease in another asset".

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