An individual asset has increased.Which of the following is possible?
A) There is an equal decrease in another asset.
B) There is an equal decrease in owner's equity.
C) There is an equal decrease in a liability account.
D) Both liabilities and owner's equity decrease.

Question

Quizplus · Accepted Answer

If one asset increases and there is an equal decrease in another asset, the total assets remain the same. This is known as an accounting equation, which states that assets = liabilities + owner's equity. Therefore, the increase in one asset can only be offset by a decrease in another asset. Option B, C, and D are incorrect as they do not follow this equation.

An Individual Asset Has Increased