Final answer:
Option D (+− = NA + NA + NA) does not accurately describe the effects of an asset source transaction on the accounting equation, as it suggests contradictory changes to assets without corresponding changes to liabilities or equity, which violates the fundamental accounting principle of balance. Thus (option D) is right answer.
Step-by-step explanation:
The student's question relates to how an asset source transaction would affect the accounting equation, which is Assets = Liabilities + CommonStock + RetainedEarnings. It's important to understand that in accounting, all transactions must keep the equation balanced, meaning that total assets always equal the sum of liabilities and shareholders' equity (common stock and retained earnings).
Option A (+ = + + NA + NA) represents an increase in assets and an equal increase in liabilities, with no change to common stock or retained earnings – this would occur if the bank took on a new deposit, for instance. Option B (+ = NA + NA + +) shows an increase in assets and an equal increase in retained earnings, with no change to liabilities or common stock – this might happen if the bank earned a profit. Option C (+ = NA + + + NA) indicates an increase in assets, liabilities, and common stock, which is possible during an additional issue of shares. Option D (+− = NA + NA + NA), however, shows a simultaneous increase and decrease in assets, with no change to liabilities, common stock, and retained earnings, which does not make sense and thus does not accurately represent the effects of an asset source transaction.
Therefore, the correct answer to the question of which option would not describe the effects of an asset source transaction is Option D, as it implies contradictory changes in assets and does not adhere to the fundamental rule that assets must equal liabilities plus net worth.
Thus (option D) is right answer.