Payment Is Made for Land Purchased Earlier on Credit

question 53

Multiple Choice

Payment is made for land purchased earlier on credit.For this transaction, identify the effect on the accounting equation.

• A) Assets increase and liabilities increase.
• B) Assets increase and stockholders' equity increases.
• C) Liabilities increase and stockholders' equity decrease.
• D) Liabilities decrease and assets decrease.

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Definitions:

Customer Waiting Time

The amount of time a customer waits before receiving a service or good.

Queuing Theory

A mathematical study of waiting lines or queues, focused on understanding and optimizing processes in which entities wait for service.

Waiting Time

The period during which one waits for something to happen or arrive.

Hierarchy of Authority

An organizational structure where every entity in the organization, except one, is subordinate to a single other entity.