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Accounting Transactions and Asset Increase

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Accounting Transactions and Asset Increase

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Questions and Answers

What is the potential consequence of a transaction that increases an asset?

A decrease in equity (correct)

A decrease in liabilities

A decrease in revenue

A decrease in expenses

In the context of an asset increase due to a transaction, what might decrease as a result?

Accounts receivable

Accumulated depreciation

Operating income

Inventory (correct)

What could be an effect of a transaction leading to an increase in assets?

A decrease in cash flow

A decrease in dividends

A decrease in accounts payable

A decrease in net profit margin (correct)

Accounting Transactions and Asset Increase

Choose a study mode

Podcast

Questions and Answers

What is the potential consequence of a transaction that increases an asset?

In the context of an asset increase due to a transaction, what might decrease as a result?

What could be an effect of a transaction leading to an increase in assets?

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