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Anit [1.1K]
2 years ago
9

atkins company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. h

ow does this transaction affect the accounting equation for atkins?
Business
1 answer:
Svetradugi [14.3K]2 years ago
6 0

The effect of the transaction by Atkins Company of collecting payment for an amount owed by a customer is One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.

<h3>How does an increase and decrease in assets affect the accounting equation?</h3>

The fact that a customer owed Atkins Company means that the customer was an accounts receivable which is an asset account.

The cash that Atkins Company collected is also an asset. So, the transaction simply led to one asset(accounts receivable) being reduced and the other asset(cash) being increased. The amount is the same so there would be no effect.

Find out more on changes to the accounting equation at brainly.com/question/27905497

#SPJ1

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Vilka [71]

Answer:

$32,647

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4 0
3 years ago
What is the Current Ratio given the following information?
azamat

Answer:

The correct option is B that is 0.45

Explanation:

Computing the Current Ratio with the formula which is as:

Current Ratio (CR)  = Current Assets (CA) / Current Liabilities (CL)

where

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Current Liabilities (CL) is $1075

Putting the values in the above formula of Current Ratio (CR):

= $477.50 / $1075

= 0.444 or 0.45

Note 1: Inventory will not be included while computing the current ratio, as it is already been added in the current assets. Therefore, there is no need of adding it twice in the Assets.

Note 2: This is the correct formula for computing the current ratio and I computed the same with the given information, so it 0.45 is the correct answer.

8 0
3 years ago
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yulyashka [42]
I believe the answer is: <span>Socially responsible
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3 years ago
What are the two key questions for an operations manager in the inspection​ process? A. How to​ inspect? What to​ inspect? B. Wh
Pani-rosa [81]

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The two key questions of what and where to inspect are always inspected with the parallel effects in which all the comparisons can be noted and achieve the inference of solution. The inference of solution will chase the defective point of the product and makes them very strong and reduces the problem of cycle flow of work allotted to the Inspection process operation.

5 0
3 years ago
What factors under the control of owners and managers make a firm successful and allow it to earn economic​ profits?
mafiozo [28]

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