1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
JulsSmile [24]
3 years ago
6

Lily Company was started last year when Lily borrowed $70 cash from the local bank. Lily used that $70 cash to purchase inventor

y for $70. This year Lily Company sold that inventory for $100 cash. Which ONE of the following statements is TRUE with respect to Lily Company's balance sheet AFTER the sale of the inventory?a. Cash is $30.b. Accounts Payable is $30.c. Owners' Equity is $100.d. Owners' Equity is $30.e. Inventory is $30.
Business
1 answer:
aev [14]3 years ago
6 0

Answer:

d. Owners' Equity is $30

Explanation:

The owners equity is the amount of money that is own by the owner of the business or the business itself minus all of the debts that the business has, in this example, Lily just sold $100 in products, generating a profit of $30, because she bought that for $70, but she owns $70 of those $100 to the local bank, so eventhough she has $100, only $30 are actually owned by the business so Owner´s Equity equals $30.

You might be interested in
Riley, age 16, and Samuel, age 36, enter into a contract in which Riley will sell Samuel his car for $11,000. The next day, Samu
Olin [163]

Answer: The answer is that Riley cannot enforce the contract because he is a minor.

Explanation:

Contract is an agreement between two or more individuals which is enforceable by the law. For a contract to be considered valid in law it must contain some essential elements such as the following

Offer: This is the person who is making the offer in the contract agreement, known as the offeror

Acceptance : This is the person who is willing to accept the offer, known in this case as the offeree.

Consideration : The law states that, all simple contract must be supported by value consideration known as price.

Intention to create legal relations :The parties in contract must agree to enter into a legal relationship as regard the contract.

Capacity : The law also states that, The parties in contract must be capable of entering into contract at the time of coming into the contract. In other words, the person must be of age of 18 years and above.

Legality : The contract must not contrary to the law , it must be seen to be legal according to the law .

Therefore, in the question under review, Riley is 16 years, by law he is a minor, he has not fulfilled one of the essential elements of a valid contract which is capacity. The law states that, any contract enter into with a minor is null and void according to law.because, as at the time of entering into the contract such a minor is not capable of entering into the contract. Therefore, Riley will not be able to enforce the contract because he is a minor.

3 0
3 years ago
The Ricardian equivalence theorem states that
motikmotik

Answer: The Ricardian equivalence theorem states that : <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>

Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.

This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.

5 0
3 years ago
Abby received requests from three families to babysit a toddler for four hours on Friday night. She can only babysit for one of
Sidana [21]

Answer:

The correct answer to the following question is $30 .

Explanation:

Opportunity cost can be described as the benefits that a person ( who can be an investor or individual or even a company  ) is missing out on , if he or she chooses one alternative over the other. This cost is not shown in financial statements but it is important for a owner or manager to understand what potential opportunity he or she is missing out on if chooses one over the other.

In the given question Abby chooses to work for Lewis who are giving her $40 to watch their toddler, so here the next best alternative that she is missing on is $30 that Gilbert's would have given her.

7 0
3 years ago
The reason that interest rate risk is greater for ____ term bonds than for ____ term bonds is that the change in rates has a gre
meriva

The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.

<h3>What is a Long-term Bond?</h3>

Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.

They usually pay a higher interest rate than the short-term bonds which span between a year and three years.

See the link below for more about long-term bonds:

brainly.com/question/3521722

4 0
2 years ago
Suppose the labor force stays​ constant, and the working age population stays​ constant, but some people who were unemployed bec
julsineya [31]
...increase due to unemployed people becoming employed and joining labor force, along with the fact that the working age population is staying constant
5 0
3 years ago
Other questions:
  • Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for Januar
    7·1 answer
  • ShipCo. produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per h
    7·2 answers
  • Candy Emporium is a legal entity whose assets and liabilities are separate from its owners. It can receive, own, and transfer pr
    14·2 answers
  • In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price
    9·1 answer
  • __________________ is a political system in which the government tolerates little or no opposition but permits nongovernmental c
    9·1 answer
  • There are approximately __ types of federal grants
    8·2 answers
  • What is a loan?
    5·1 answer
  • businesses, especially e-businesses, often collect data about their customers, the individuals and organizations with which they
    10·1 answer
  • Which factors are considered when deciding how to make goods and services?
    10·1 answer
  • If an entrepreneur needs help with valuation, they should ______. turn to online sites like BizBuySell and BizQuest rely on the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!