The Macro Corporation Has Purchased Land for $100,000 and Has

question 27

Multiple Choice

The Macro Corporation has purchased land for $100,000 and has financed 50% of the cost using long-term debt. The effect on its balance sheet is _______________________________.

• A) an increase in assets of $50,000; an increase in liabilities of $50,000
• B) an increase in assets of $100,000; a decrease in owners' equity of $100,000
• C) an increase in assets of $100,000; an increase in liabilities of $50,000
• D) a decrease in assets of $50,000; a decrease in owners' equity of $50,000

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Definitions:

Random Access Memory (RAM)

A type of computer memory that can be accessed randomly, used for storing operating data and machine code currently in use.

Read-Only Memory (ROM)

A type of non-volatile memory used in computers and electronic devices, storing data permanently and typically containing the system's firmware.

Swap File

A file on a hard disk used as a temporary storage area for data that cannot be held in the main system memory.

Virtual Memory

A memory management capability of an operating system that uses hardware and software to allow a computer to compensate for physical memory shortages, temporarily transferring data from random access memory (RAM) to disk storage.