A transaction that causes an increase in an asset may also cause a decrease in another asset,an increase in a liability,or an increase in owners' equity.

Question

Quizplus · Accepted Answer

This is true as every transaction in accounting must follow the double-entry system where one account is debited and another account is credited. Therefore, an increase in one asset account may require a corresponding decrease in another asset account, an increase in a liability account, or an increase in owners' equity.

A Transaction That Causes an Increase in an Asset May