Land Was Originally Purchased for $20,000

question 6

Multiple Choice

Land was originally purchased for $20,000. It is sold for $20,000 in cash. How does the sale affect the accounting equation?

• A)Assets increase by $20,000; liabilities decrease by $20,000.
• B)Assets increase by $20,000; liabilities increase by $20,000.
• C)Assets increase by $20,000; equity increases by $20,000.
• D)Assets increase by $20,000; assets decrease by $20,000.

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Definitions:

Zero-Order Reaction

a chemical reaction in which the rate is independent of the concentration of the reactant(s).

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, used medically as a local anesthetic and often abused for its euphoric effects.

First Order

In kinetics, refers to a reaction where the rate is proportional to the concentration of one reactant.

Reaction Order

A term used in chemistry to describe the power to which the concentration of a reactant is raised in the rate equation.