What effect does this journal entry have on the accounts?
A) Increase to Cash and increase to Land
B) Increase to Land and decrease to Cash
C) Decrease to Cash and decrease to Land
D) Increase to Cash and decrease to Land

Question

What effect does this journal entry have on the accounts?
A) Increase to Cash and increase to Land 
B) Increase to Land and decrease to Cash 
C) Decrease to Cash and decrease to Land 
D) Increase to Cash and decrease to Land

Quizplus · Accepted Answer

The journal entry results in an increase to the Land account and a decrease to the Cash account, as indicated by the debit and credit entries respectively. Therefore, option B (Increase to Land and decrease to Cash) is the correct answer.

What Effect Does This Journal Entry Have on the Accounts