A transaction that decreases a liability and increases an asset must also affect one or more other accounts.

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Briceyda Aguilera · Accepted Answer

Final Answer : True, Explanation :  This is because every transaction must follow the basic accounting equation, which states that assets = liabilities + equity. If a liability decreases and an asset increases, then equity must also change to balance the equation. Therefore, one or more other accounts must be affected.

A transaction that decreases a liability and increases an asset must also affect one or more other accounts.

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