Question

After conducting a financial transaction, a company’s accounting staff records a $1,000 decrease in a particular asset. in order for the accounting equation to balance, the accounting staff must also record which of the following things?

Answer 1

In order for the accounting equation to be balanced, the accounting staff must also record A $1000 INCREASE IN A DIFFERENT ASSET.
It is important for the accounting department of a business to keep the accounting details of the company balanced. In accounting for assets, in a situation where a decrease is recorded on a particular asset for a reason, then that decrease must be balanced by increasing the value of another asset by the same amount that is removed from the first asset.