Which of the following direct effects on the accounting equation is not possible as a result of a single business transaction which impacts only two accounts? Select one: a. An increase in a liability and a decrease in an asset. b. A decrease in stockholders' equity and a decrease in an asset. C. An increase in an asset and a decrease in an asset. d. An increase in stockholders' equity and an increase in an asset.

Which of the following direct effects on the accounting equation is not possible as a result of a single business transaction which impacts only two accounts? Select one: a. An increase in a liability and a decrease in an asset. b. A decrease in stockholders' equity and a decrease in an asset. C. An increase in an asset and a decrease in an asset. d. An increase in stockholders' equity and an increase in an asset.

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Description: Which of the following direct effects on the accounting equation is not possible as a result of a single businesstransaction which impacts only two accounts?Select one:a. An increase in a liability and a decrease in an asset.b. A decrease in stockho

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Which of the following direct effects on the accounting equation is not possible as a result of a single business
transaction which impacts only two accounts?
Select one:
a. An increase in a liability and a decrease in an asset.
b. A decrease in stockholders' equity and a decrease in an asset.
C. An increase in an asset and a decrease in an asset.
d. An increase in stockholders' equity and an increase in an asset.

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