A Business Acquires a Parcel of Land by Issuing a Note

question 76

Multiple Choice

A business acquires a parcel of land by issuing a note payable for $50,000. This transaction causes:

• A)total assets to increase.
• B)owner's equity to increase.
• C)assets to increase and equity to increase.
• D)liabilities to decrease.

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Definitions:

Advantage

A condition or circumstance that places a person or entity in a favorable or superior position.

Import Quotas

Restrictions imposed by a government on the amount or value of goods that can be imported into a country, often used to protect domestic industries.

Tariffs

Taxes imposed by a government on imported goods and services.

Revenue

The sum of revenue resulting from the sales of products or services that are central to a company's main business activities.