When a business purchases land with a note payable:
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 with a note payable, both assets (land) and liabilities (note payable) are increased. Therefore, choice C is the best answer.

When a Business Purchases Land with a Note Payable