Company Z Sells Land for the Same Amount It Paid

question 141

Multiple Choice

Company Z sells land for the same amount it paid for it three years ago. When the company records this transaction:

• A)assets and stockholders' equity are increased.
• B)one asset is increased and another asset is decreased.
• C)one liability is increased and another liability is decreased.
• D)assets are increased and liabilities are decreased.

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Definitions:

Scarce Resources

Goods that are limited in availability and cannot meet all the demands of the consumers.

Total Income

The summation of all earnings or revenue generated by an individual or entity, before any deductions or taxes.

Income Share

The proportion of total national or group income that is received by individuals, households, or classes of income earners.