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.

---

Definitions:

Paralegals

Trained legal assistants who support attorneys in a wide range of legal tasks, including research and document preparation but not the practice of law.

Partnership Agreement

A written agreement between business partners outlining the rules and responsibilities within the partnership.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

State

A political entity characterized by a defined territory, population, and government with sovereignty over its domestic and international affairs.