The Purchase of Land for Cash Would

question 66

Multiple Choice

The purchase of land for cash would:

• A)increase total assets.
• B)decrease stockholders' equity.
• C)increase the total debits on the trial balance.
• D)have no effect on total assets.

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Definitions:

Supplies

Items or materials used in the operation of a business, often consumable in nature.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially the net assets owned by the proprietors.

Liability

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Course Of Business

The usual activities and practices of a company or individual in their day-to-day operations.