Exercise 1-12 Identifying effects of transactions on the accounting equation P1 Provide an example of a transaction that creates the described effects for the separate cases a through g. 1. Decreases an asset and decreases equity. ). Increases an asset and increases a liability. 3. Decreases a liability and increases a liability. 1. Decreases an asset and decreases a liability. 2. Increases an asset and decreases an asset. f. Increases a liability and decreases equity. 3. Increases an asset and increases equity