If cash is stolen, which of the following could help balance the accounting equation?

Balancing the accounting equation, which is Assets = Liabilities + Equity, is essential when cash is stolen. Each of the options presented has the potential to impact this equation and maintain its balance after a theft.

Increasing another asset can help balance the equation because if cash (an asset) is lost, increasing another asset, such as inventory or accounts receivable, compensates for that loss, keeping the overall asset total the same.

Reducing revenue is another way to balance the equation. If cash is stolen, this could be interpreted as a potential loss of revenue. By reducing revenue, it can offset the decrease in assets, specifically cash. Revenue affects the equity part of the equation, meaning by decreasing it, you reduce equity, maintaining balance with the decrease in cash.

Reducing a liability can also contribute to balancing the equation. If cash is stolen and recorded as a loss, the company could choose to decrease its liabilities by paying them down or adjusting their accounts, which would bring liabilities in line with the reduced asset total.

Given that any one of these actions could help maintain the integrity of the accounting equation, the answer that encompasses all these possibilities is indeed correct.