Zimmerman Company sold land for $25,000 cash.The original cost of the land was $25,000.Which of the following accurately reflects how this event affects the company's financial statements?

Question

Quizplus · Accepted Answer

Selling land for cash increases one asset (cash)and decreases another asset (land),so it does not affect overall assets,liabilities or equity.It does not affect the income statement,but is reported as a cash inflow for investing activities on the statement of cash flows.

Zimmerman Company Sold Land for $25,000 Cash