Which of the following direct effects on the accounting equation isn't possible as a result of a single business transaction which impacts only two accounts?
A)An increase in a liability and a decrease in an asset.
B)An increase in stockholders' equity and an increase in an asset.
C)An increase in an asset and a decrease in an asset.
D)A decrease in stockholders' equity and a decrease in an asset.

Question

Quizplus · Accepted Answer

With one transaction impacting only two accounts, the accounting equation would not be in balance if there was an increase in a liability and a decrease in an asset.

Which of the Following Direct Effects on the Accounting Equation