identity the statement below that is correct Mutiple Choice Increases and decreases in cash are always recorded in the common stock account. An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business. Accounts receivable are held by a seller and are promises of payment from customers to sellers. When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense. Accrued liabilities include accounts receivable.