All categories

2 years ago

If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be:_________

1 answer:

4 0

If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be one asset increases $1,600 and another asset decreases $1,600, causing no effect.

<h3>What is an accounting equation?</h3>

The relationship between a person's or company's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone. The sum of the debits and credits for each transaction is equal.

Stockholders' equity is referred to as capital in corporations. Since every business transaction impacts at least two accounts, the accounting equation will always be "in balance," which means the left and right sides of a company's balance sheet should always be equal.

To know more about accounting equations visit:- brainly.com/question/14689492

#SPJ4

You might be interested in

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200

77julia77 [94]

Answer:

qualified acquisition debt = $750,000

qualified home equity debt = $0

Explanation:

Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.

Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.

8 0

3 years ago

Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund inv

balu736 [363]

Answer:

8.66%

Explanation:

The computation of the rate of return for the investor in the fund is as follows:

= (Net assets at the end + dividend per share - nav at the beginning of the year) ÷ (nav at the beginning of the year)

where,

Net assets at the end is

= $203 million + $203 million × 7% - ($217.21 million × 0.75%)

= $203 million + $14.21 million - $1.6291 million

= $217.21 million - $1.6291 million

= $215.58093 million

Dividend per share is

= $5 million ÷ 10 million shares

= 0.5

Nav at the beginning of the year is

= $203 million ÷ 10 million shares

= $20.3

Now the rate of return is

= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)

= 8.66%

6 0

3 years ago

Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $551,000, and fixed costs are $207,000. How mu

MAVERICK [17]

Answer: a.$10,904 increase

Explanation:

Operating income before sales increase:

= Sales - Variable costs - Fixed costs

= 551,000 - (71% * 551,000) - 207,000

= -$47,210

Operating income after sales increase:

Sales increases to:

= 551,000 + 37,600

= $588,600

= 588,600 - (71% * 588,600) - 207,000

= -$36,306

Difference:

= -47,210 - (-36,306)

= Increase of $10,904

7 0

3 years ago

Your company decides to use internal sources for developing new product ideas. Which of the following would not be a common inte

Fed [463]

Answer: (D) Suppliers

Explanation:

According to the given question, the organization using the various types of internal sources as it helps in developing the various types of new products ideas in the market.

The supplier is one of the common internal source in an organization as it helps the employees for encourage them for developing various types of new ideas and concepts.

The organization basically developing various types of new ideas by the formal research process and also through the development. Therefore, Option (D) is correct answer.

5 0

3 years ago

If a consumer chooses not to perceive they are reaching ________.

Yuliya22 [10]

Quality value price reach consumer goods

8 0

3 years ago