To Maintain the Balance Sheet Equality, It Is Necessary to Report

Multiple Choice

To maintain the balance sheet equality, it is necessary to report every event and transaction in a dual manner. If a transaction results in an increase in the left hand side of the balance sheet, dual transactions recording requires that which of the following must occur, to maintain the balance sheet equation?

A) decrease another asset
B) increase a liability
C) increase shareholders equity
D) all of the above will maintain the balance sheet equation
E) none of the above