Applying the accounting equation, which of the following might also occur when the amount of a liability of a business entity is increased?

 The amount of a liability of a business entity is increased

Applying the accounting equation, which of the following might also occur when the amount of a liability of a business entity is increased?

If a liability is increased, then in order to keep the accounting equation another liability must be reduced, capital must be reduced or assets must be increased. Capital is reduced by a charge against profits (i.e. by incurring an expense).