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

User Generated

angnyvrsehvg

Business Finance

Description

A. total assets increased.

B. total assets were not affected.

C. total assets and liabilities increased.

D. total assets decreased.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Thank you for the opportunity to help you with your question!

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

Please let me know if you need any clarification. I'm always happy to answer your questions.


Anonymous
Super useful! Studypool never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags