Company Z sells land for the same amount it paid for it three years ago. When the company records this transaction:
A)assets and stockholders' equity are increased.
B)one asset is increased and another asset is decreased.
C)one liability is increased and another liability is decreased.
D)assets are increased and liabilities are decreased.

Question

Quizplus · Accepted Answer

When Company Z sells land for the same amount it paid, cash (an asset) is increased, and land (another asset) is decreased by the same amount, resulting in no net change in total assets.

Company Z Sells Land for the Same Amount It Paid