Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Contribution of land by stockholder
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

Question

Quizplus · Accepted Answer

Contribution of land by a stockholder is an increase in assets, as land is being acquired. It does not affect liabilities or decrease assets. It increases stockholders' equity as it is being contributed by the stockholder.

Match Each Transaction with Its Effect on the Accounting Equation