Answer:
a. increased by $56,000
Explanation:
General accounting equation ;
Assets = Liabilities + Owners equity
Owners equity = Assets - Liabilities.
Therefore,
Increase in stockholder's equity
= $87,000 - $31,000
= $56,000
Answer:
true
Explanation:
employees play a significant role in the success of a service based business because they build an atmosphere of trust , confidence and loyalty among the customer by interacting with the customer while the service is being provided.
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
- bank A = $1,000 x 10% = $100
- bank B = $1,000 x 90% = $900
If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.
This attitude is called cash register honesty.
The book store worker knows very well that ball point pens, post-its, copies on the copier machine and long-distance phone calls are office resources and should, in principle, be used only for office purposes.
He is also aware that the he is responsible for his own needs - be it post-its or long-distance phone calls.
By taking some small supplies home or using the office equipment for personal use (e.g. making personal copies or making personal long-distance phone calls), he increases the cost to the company.
Yet, he continues to indulge in the activities described in the question, because he believes, at a personal level, that he can get away with it . (It's okay with him at a personal level.)
However, since stealing from the cash register is not ok with him on a personal level, he doesn't do it even though he knows he can get away with it. This attitude is called cash register honesty.
