Land Acquired So It Can Be Resold in the Future

question 102

Multiple Choice

Land acquired so it can be resold in the future is listed on the balance sheet as a (n)

• A) fixed asset
• B) current asset
• C) investment
• D) intangible asset

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Definitions:

Accounting Equation

A fundamental financial principle represented as Assets = Liabilities + Owners' Equity, showing the relationship between a company's resources and its sources of financing.

Transactions

Financial activities or events that affect the financial position of a business, such as buying, selling, or transferring assets.

Sole Stockholder

An individual or entity that owns 100% of the outstanding shares of a corporation.

Income Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.