Anthony, Inc.buys land for $50,000 cash.The net effect on assets is:
A) $50,000 increase.
B) $0.
C) $50,000 decrease.
D) $25,000 increase.

Name: Anthony, Inc.buys land for $50,000 cash.The net effect on assets is: A) $50,000 increase. B) $0. C) $50,000 decrease. D) $25,000 increase.
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Question

Quizplus · Accepted Answer

The net effect on assets is $0 because while cash (an asset) decreases by $50,000, land (another asset) increases by $50,000, leaving the total assets unchanged.