Li Company Paid Cash to Purchase Land

question 24

Multiple Choice

Li Company paid cash to purchase land.What happened as a result of this business event?

• A)Total assets decreased.
• B)Total assets were unaffected.
• C)Total equity decreased.
• D)Both assets and total equity decreased.

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Definitions:

Disburses

The act of paying out or distributing funds, typically related to the operational expenses or investment payouts of a company.

Average Amount

A statistic that represents the central or typical value of a set of numbers, calculated by dividing the sum of all values by the number of values.

BAT Model

A model used in negotiation that stands for Best Alternative To a Negotiated Agreement, helping parties determine their course of action should negotiations fail.

Disbursements

Money paid out by a business or an organization for various purposes, including expenses, investments, and dividends.