Final answer:
A lien attached to land at the time of purchase would be listed as a liability on a balance sheet, while the land would be considered an asset. This reflects the obligation to pay off the debt associated with the lien.
Step-by-step explanation:
On a balance sheet, a lien attached to land at the time of purchase would be reflected in the liability section. A lien indicates that money is owed, and the land cannot be freely transferred until the debt it secures is paid off. The land itself would be listed as an asset, while the lien would be shown in the liabilities, demonstrating the entity's obligation to pay off the debt associated with it. In the context of a bank's balance sheet, the principle is the same: assets represent valuable items a bank owns, like cash and loans issued to customers, while liabilities represent debts or obligations, like customer deposits or any liens against its property.