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)
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