Which of the following describes the effects of an asset use transaction on the accounting equation?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following describes the effects of an asset use transaction on the accounting equation? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

An asset use transaction involves using an asset in the course of business operations, which results in a decrease in the asset account and an increase in an expense account. This means that both sides of the accounting equation will decrease, and the equation will remain in balance. Option B shows a decrease in the asset account and an increase in the expense account, which is the correct effect on the accounting equation for an asset use transaction.

Which of the Following Describes the Effects of an Asset