L. Balance Sheet Statement of Cash Flows Questions 3-10: Show how each of the following eight (8) business transactions affects the accounting equation as increase/decrease in assets. liabilities and/or equity. The correct answer is the one that both balances the accounting equation and is consistent with the nature of the business transaction itself. 3. Diana, owner, contributes $15,000 cash in exchange for capital A. Assets Increase: Liabilities Increase B. Assets Decrease; Equity Decreases C. Assets Increase; Assets Decrease D. Liabilities Increase; Equity Decreases E. None of the above