The Crab Company purchased land costing $2,400 cash. THe company earned $2,000 revenue on account and incurred $1,100 operation expenses on account. As a result of these transactions:
- total assests increased by $2,400
- liabilities increased by $1,100
- total assets increased by $5,400
- both a and b

Your liabilities increased by $1,100. Your net change in assets is $2,000 as land purchased for cash is a wash as far as change in assets.

Total liabilities increased by $1100.
The increase in Land asset was offset by the decrease in cash to purchase the land, therefore no change in assets.
Total assets actually increased by $2000, in Accounts Receivable due to the $2000 revenue on account.