Sunset Company sells land for cash at a price in excess of its cost. Which of the following is true as a result of this transaction? a. Cash is decreased. b. Decreases total liabilities. c. Total assets are unchanged. d. Owners' equity is decreased. e. none of the above.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 27MC: What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both...
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Sunset Company sells land for cash at a price in
excess of its cost. Which of the following is true as
a result of this transaction?
a. Cash is decreased.
b. Decreases total liabilities.
c. Total assets are unchanged.
d. Owners' equity is decreased.
e. none of the above.
Transcribed Image Text:Sunset Company sells land for cash at a price in excess of its cost. Which of the following is true as a result of this transaction? a. Cash is decreased. b. Decreases total liabilities. c. Total assets are unchanged. d. Owners' equity is decreased. e. none of the above.
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