Murphy Company Had Originally Purchased Land for $35,000

question 42

Multiple Choice

Murphy Company had originally purchased land for $35,000.It later sold it for $35,000 in cash.Which of the following is true of the effect of the sale of land on the accounting equation?

• A)assets increase and liabilities decrease by $35,000
• B)assets and equity increase by $70,000
• C)assets increase by $35,000;equity increases by $35,000
• D)the amount of total assets remains the same

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Definitions:

Pyroclastic Column

A dense, vertical cloud of hot volcanic ash, gas, and debris that rises from an explosive eruption.

Lava Dome

A lava dome is a mound-shaped protrusion resulting from the slow extrusion of viscous lava from a volcano.

Lava Flow

The movement of molten rock or lava released during a volcanic eruption across the Earth's surface.

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials that flows down the side of a volcano during an explosive eruption.