Determine the effect on a company’s Assets and Net Income from the following transaction: land is purchased with cash.
| Assets | Net Income | |
|---|---|---|
| A | Decreased | Decreased |
| B | Decreased | No effect |
| C | Increased | No effect |
| D | Increased | Increased |
| E | None of the above | |
| Click Here to View All Chapter 2 Problems at Once | View | ||
| 1 | Account Classification | Easy | |
| 2 | Current Assets | Easy | |
| 3 | Journal Entry - Inventory | Easy | |
| 4 | Journal Entry - Sales | Easy | |
| 5 |
Land Purchased With Cash
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Easy | |
| 6 | Retained Earnings | Easy | |
| 7 | T/F: Liabilities and Equity | Easy | |
| 8 | T/F: T-Account Logic | Easy | |
| 9 | Normal Balances | Moderate | |
| 10 | Solving for Missing Amounts | Moderate | |
| 11 | The Effect of Journal Entries | Moderate | |
| 12 | What Should Be Journaled | Moderate | |
| 13 | Account Classifications | Hard |
| 1 | Current Assets | 9:57 | |
| 2 | Non-Current Assets | 10:25 | |
| 3 | Current Liabilities | 6:24 | |
| 4 | Non-Current Liabilites | 2:00 | |
| 5 | Contributed Capital | 5:10 | |
| 6 | The Classified Balance Sheet | 4:48 | |
| 7 | Retained Earnings vs Shareholder's Equity | 6:41 | |
| 8 | T-Accounts | 3:15 | |
| 9 | Debits and Credits | 6:49 | |
| 10 | Determining Normal Balances For Assets & Liabilities | 10:04 | |
| 11 | Determining Normal Balance for Shareholder's Equity | 11:53 | |
| 12 | Normal Balance Shortcut: Double Entry | 11:51 | |
| 13 | Normal Balance Shortcut: DEAD Mnemonic | 2:36 | |
| 14 | The Journal, Ledger, Trial Balance | 14:00 |