Lang Industries Received Payments from Customers Who Had Been Billed

question 49

Multiple Choice

Lang Industries received payments from customers who had been billed earlier for services provided. What effect does this transaction have on Lang's accounting equation?

• A) Assets and liabilities increase.
• B) Assets and stockholders' equity increase.
• C) Assets and liabilities decrease.
• D) There is no net effect on the accounting equation, as one asset account increases while another asset account decreases.

Recognize the impact of zoning, restrictive covenants, and other public and private restrictions on the use and transfer of land.

Understand the legal requirements and effects of foreclosure on mortgagor's rights and obligations.

Comprehend the significance and function of title searches, title insurance, and the registration of property deeds.

Understand the legal theories underlying mortgages, including lien theory and title theory, and their implications for borrowers and lenders.

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Definitions:

External Benefits

The positive effects of a production or consumption activity on third parties who are not directly involved in the transaction.

Efficient Level

The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.

External Costs

Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.

External Benefits

Benefits from an economic activity experienced by parties not directly involved in the transaction, often leading to positive spillovers in society.