Which of the following will not cause a change in the owners' equity of a business? a

Accounting Dec 16, 2020

Which of the following will not cause a change in the owners' equity of a business?

a. Purchase of land with cash.

b. Withdrawal of cash by the owner.

c. Sale of land at a profit.

d. Losses from unprofitable operations.

Expert Solution

The purchase of land with cash will not change the owners' equity in a business.

Since the cash was already an asset in business, the purchase of land only transfers that value from cash to land, but does not cause an increase in value that would affect equity.

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