Reference no: EM132768508

Questions -

Q1. What is the proper way to record a decrease in an asset account and a decrease in a liability account?

A. Asset, debit liability, credit

B. Asset, credit liability, credit

C. Asset, debit; liability, debit

D. Asset, credit liability, debit

Q2. On January 1, a company has total assets of $700,000, total liabilities of $500,000, and total equity of $200,000. On January 1, the company entered into the following two transactions.

Purchasing goods for resale total cost of this inventory was $50,000; the company paid $10,000 cash and the remainder was put on the company's credit accounts with its suppliers.

Selling land for cash; the original cost of the land was $100,000; the land was sold for $80,000.

After these two transactions, what is this company's total assets?

A. $850,000

B. $830,000

C. $720,000

D. $740,000