All categories

2 years ago

An equation showing the relationship among assets, liabilities, and owner’s equity.

Business

1 answer:

katen-ka-za [31]2 years ago

5 0

An equation showing the relationship among assets, liabilities, and owner’s equity is assets = capital + liability.

You can determine it by taking away all obligations from the total asset value: Assets minus liabilities equal equity. The value of the assets donated by the owner(s) and the entire income that the business generates and keeps is referred to in accounting as the company's total equity value.

A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current.

Learn more about assets here

brainly.com/question/25746199

#SPJ4

You might be interested in

True or false: all of the points along a production possibilities frontier are efficient

Helga [31]

This answer would be true

6 0

3 years ago

Wilson, Bart, and Susan Fields decide to set up a corporation together called Fields, Inc. They follow the correct procedures fo

LUCKY_DIMON [66]

Answer:c. pierce the corporate veil due to the failure to hold required corporation meetings.

Explanation:Corporation is a form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity.

8 0

3 years ago

The consumer price index (CPI) is calculated a. using a fixed basket of goods and, therefore, will tend to understate inflation.

jasenka [17]

Answer: b. using a fixed basket of goods and, therefore, will tend to overstate inflation.

Explanation:

CPI uses a fixed basket of goods each year and measure inflation by monitoring the changes in this basket over several years/ periods.

This has the tendency to overstate inflation however, due to three(3) main reasons: Substitution bias, Quality bias and New product bias.

With substitution bias, the CPI does not take into account that when products increase in price, people will substitute them for lower priced goods. Quality bias means that CPI does not account for change in quality. New Product bias means that CPI does not account for new and better products as it uses a fixed basket.

Put together these three can cause CPI to overstate inflation by as much as 1% sometimes.

7 0

3 years ago

Machinery was purchased for $340,000 on January 1, 2017. Freight charges amounted to $14,000 and

Triss [41]

Answer:

Correct answer is A, $133,600

Explanation:

First, let’s compute the capitalizable amount of an asset on January 1, 2017.

Cost of machinery $340,000 plus the freight charges of $14,000 and the installation cost of $40,000 equals $394,000. Capitalizable cost includes all expenses incurred in bringing the asset in to its usable stage.

Second, let’s compute the depreciation expense using straight line method in December 31, 2017.

(Cost of asset - salvage value) / life of an asset

($394,000 - $60,000) / 5 years = $66,800

Finally, we can now compute the accumulated depreciation as of December 31, 2018 by multiplying annual depreciation computed previously (January 1, 2017 to December 31, 2017) by 2.

So, $66,800 x 2 years (2017 & 2018) = $133,600

4 0

3 years ago

PLEASE HELP ASAP! Will give BRAINLIEST! Please answer correctly!<br> No guessing!

drek231 [11]

Answer:

Explanation:

I took ape-x classes also lol

8 0

3 years ago

Read 2 more answers