When a business purchases land on account:
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.

Question

Quizplus · Accepted Answer

When a business purchases land on account, it means they acquire the land but have not yet paid for it, thus increasing both assets (land) and liabilities (accounts payable).

When a Business Purchases Land on Account