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1 year ago

Paying an amount on account reduces:_______

Business

1 answer:

hichkok12 [17]1 year ago

3 0

Option (d) the amount owed on a liability is correct.

Paying an amount on account reduces the amount owed on a liability.

<h3>What is liability?</h3>

A liability is an obligation that a person or business has, typically financial in nature. Over time, liabilities are resolved by the transmission of economic advantages like cash, products, or services.
There are various ways to define a liability's duration. The average duration (or mean term) of the liability is what is typically meant by the term "duration of liability" in actuarial valuation. In other terms, it refers to the typical rate of a liability's repayment.
Liabilities can be used by businesses to increase liquidity if they are having cash flow issues. Most small and medium-sized enterprises lack the financial resources necessary to grow.

Learn more about liability here:

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Osage Corporation issued 3,700 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco

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Answer:

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

Explanation:

(a) The stock had a par value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

(b) The stock had a stated value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock............58,000

Being issuance of 3700 common stock with no stated value per share

(d) The stock had a par value of $9 per share and was issued to attorneys for services during incorporation valued at $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for attorney fees

(e) The stock had a par value of $9 per share and was issued for land worth $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for acquisition of land.

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3 years ago

Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town nex

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Answer:

Contingency viewpoint or approach of management

Explanation:

According to the contingency viewpoint, there is no particular standard of management. Rather, the type of management style adopted including decisions made depends on the type of situation that the organization is facing at the particular time. Nikita in this scenario is using the contingency approach since she is making decisions based on the upcoming convention.

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3 years ago

In recent years, the trend among U.S. firms is to outsource the "production" of certain service activities to developing nations

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Answer:

TRUE

Explanation:

We currently live in a globalized world. Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper, becoming consequently more competitive. Thus, US multinational companies outsource the manufacture of components of their products in different territories. For example, an Iphone has components made in China, Vietnam and others. This makes the final price of the iphone lower around the world.

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3 years ago

Assume that a Japanese car manufacturer exports cars to U.S. dealerships, which are priced in yen. The demand for those cars dec

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Answer:

producing more automobiles in the U.S.

Explanation:

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3 years ago

Three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect tha

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Answer: higher; lower

Explanation:

From the question, we are informed that three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect that there will be a rise in the equilibrium price while there will be a reduction in the equilibrium quantity.

This is because when one producer leaves, there will be less supply of the good that is sold, this will eventually lead to a rise in price.

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3 years ago