The following information pertains to the next two questions. Company A paid $30,000 cash to buy land from Company B.

9.        Select the statement that is true.

a.        Total liabilities of Company B would increase.

b.        Total assets of Company A would be unaffected.

c.        Company A's equity would increase.

d.        None of the above.

10.      Select the statement that is true.

a.        Company A would have a cash outflow from investing activities.

b.        Company B would have a cash inflow from investing activities.

c.        The balance in the cash account on Company A's books would decrease, while the balance in the cash account on Company B’s books would increase.

d.        All of the above statements are true.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below b Total assets of Company A would be un... View the full answer