Company Z Sells Land for the Same Amount It Paid

question 141

Multiple Choice

Company Z sells land for the same amount it paid for it three years ago. When the company records this transaction:

• A)assets and stockholders' equity are increased.
• B)one asset is increased and another asset is decreased.
• C)one liability is increased and another liability is decreased.
• D)assets are increased and liabilities are decreased.

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Definitions:

Materials Ledger

The subsidiary ledger containing the individual accounts for each type of material.

Source Document

Original records that contain details about a business transaction, serving as evidence of that transaction.

Clock Card

A physical or digital timekeeping tool used to record the times an employee starts and finishes work.

Job Cost Sheet

A record that tracks the costs associated with a specific job or order, including materials, labor, and overhead costs.