Lamar Company originally purchased land for $33,000.It later sold the land for $33,000 in cash.Which of the following is TRUE of the effect of the sale of land on the accounting equation?

Question

Quizplus · Accepted Answer

The sale of land for $33,000 in cash does not affect the total assets of the company since both the land and cash are assets. The company's assets have simply been converted from land to cash. Therefore, the accounting equation remains in balance as there is no change in total assets, liabilities, or equity.

Lamar Company Originally Purchased Land for $33,000