Zack's, Inc. sold land that cost $85,000 for $70,000 cash. As a result

Accounting
Tutor: None Selected Time limit: 1 Day

A. total assets increased.

B. total assets were not affected.

C. total assets and liabilities increased.

D. total assets decreased.

Sep 13th, 2015

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According to the accounting principles  when an asset is sold below its market value then the total assets in the balance sheet will be affected by reduction. The land is an asset and its part of the total asset fixed assets of the company.

 The correct answer is D

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Sep 13th, 2015

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