Accord Corporation purchased land for $100,000 by making a cash payment of $30,000 and promising to pay the remaining amount in a later accounting period. What is the net effect of this transaction on Accord's accounting equation?

A) assets increase by $100,000 and liabilities decrease by $30,000
B) assets increase by $100,000 and liabilities decrease by $70,000
C) assets and equity increase by $70,000
D) assets and liabilities increase by $70,000

D

Business

You might also like to view...

The market value of a company equals the number of outstanding shares multiplied by the most recent transaction price per share.

a. true b. false

Business

The statement of work is a detailed narrative description of the work required for a project

Indicate whether the statement is true or false

Business