Answered: What happens to the accounting…

Business

Accounting

What happens to the accounting equation?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23: Statement Of Cash Flows

Section: Chapter Questions

Problem 4SEA

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Question

ABC Company sold some land that it had bought for $20,000 and received $20,000 cash. What happens to the accounting equation?

Group of answer choices

Total assets decrease by $20,000

Total assets increase $20,000

Total assets do not change.

Liabilities increase $20,000.

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