When a Business Purchases Land with a Note Payable

question 138

Multiple Choice

When a business purchases land with a note payable:

• A)both assets and stockholders' equity are increased.
• B)assets are decreased and stockholder's equity is increased.
• C)both assets and liabilities are increased.
• D)assets are increased and liabilities are decreased.

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Definitions:

Itching

An uncomfortable sensation on the skin that provokes the desire to scratch, often caused by irritation, allergies, or infections.

Anus

The external opening of the anal canal.

Tongue

The muscular organ of the mouth that assists in the production of speech, contains the taste buds, and provides the ability to swallow.

Papillae Projections

Small, nipple-like structures on the surface of an organ, such as the tongue, that often contain taste buds.