When a transaction causes an assets account to increase, there is?
Answer Details
When a transaction causes an assets account to increase, there is no corresponding decrease of equal amount in the owner's equity account, an increase in a liability account, or a decrease of equal amount in a liability account. Therefore, the first option is incorrect. Instead, an increase in an assets account means that the value of the asset has gone up. This can be due to various reasons such as purchase, production, or an increase in the value of an existing asset. Since assets are owned by the company, an increase in assets increases the overall value of the company, which is reflected in the owner's equity account. So, the correct answer is that an increase in assets account will lead to an increase in the owner's equity account.