Question
The questions below present you with a transaction at a hypothetical company. You need to use your understanding of the transaction and your knowledge of
The questions below present you with a transaction at a hypothetical company. You need to use your understanding of the transaction and your knowledge of the balance sheet equation (A = L + S/E) to answer how Total Assets, Total Liabilities and Total Sharholders' Equity would be affected by the transaction. In each blank, you must type either "increase", "decrease", or "no change". |
The company acquires a parcel of land that it will use in the future. The company made a downpayment of $1,000 and signed a mortgage obligating it to pay $20,000 plus interest in the future. Total Assets ________ Total Liabilities _________; Total Shareholders' Equity __________
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