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Kazeer [188]
3 years ago
13

How does the payment of rent for equipment affect the accounting equation? assets increase; assets decrease assets decrease; sto

ckholders' equity decreases assets decrease; liabilities increase assets increase; stockholders' equity increase?
Business
2 answers:
djverab [1.8K]3 years ago
6 0
The answer to this question is <span>assets decrease; stockholders' equity decreases 

The journal for this transaction would be

Debit:  Rent expense       xxxxx
Credit:         Cash                                xxxx
 
 Since cash is considered an asset, it will decrease asset if it placed on credit.
 Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit     </span>
rjkz [21]3 years ago
5 0

By assets decrease; stock holders' equity decreases the payment of rent for equipment affect the accounting equation.

Further Explanation:

assets decrease:

A business diminishes a benefit account as it uses up or devours the advantage in its activities. Resources a business uses up incorporate money, supplies, debt claims and prepaid costs. For instance, if your private venture pays $100 for a service charge, you would credit money by $100 to diminish the record.  

stock holders:

Investors are individuals who hold stocks — as it were, possess shares — in a company. When you purchase stocks, it resembles purchasing some portion of the organization. The more offers you purchase, the more put you are in an organization.  

equity decreases:

A diminishing in the proprietor's value can happen when an organization loses cash during the typical course of business and proprietors need to move value into ordinary business tasks. It additionally diminishes when a proprietor pulls back cash for individual use.  

accounting equation:

The accounting equation, likewise called the accounting report condition, speaks to the connection between the advantages, liabilities, and proprietor's value of an individual or business. It is the establishment for the twofold passage accounting framework. For every exchange, the all out charges equivalent the complete credits.

Subject: business

Level: High School

Keywords: assets decrease,  stock holders, equity decreases, accounting equation.  

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Temka [501]

Answer:

T

Explanation:

7 0
3 years ago
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,00
Paladinen [302]

Answer:

a. $69.46

b. 58.15

Explanation:

a. Price = Benchmark PS ratio × Sales per share

<u>Sales per Share</u>

=  Sales / Shares outstanding

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= $16.15

Price = 4.3 * 16.15

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7 0
3 years ago
X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows:Year Project A
liq [111]

Answer:

A) Project A = 0.83 year

B) NPV of Project B = $14,609.66

C) Answer B

Explanation:

Requirement A

We know,

Payback period = Last year with negative cumulative cash flows + (Absolute value of last year's cumulative cash flow ÷ Cash flow of the following year's negative cumulative cash flow)

Or, Payback period = A + ( B ÷ C)

                             Project A                                       Project B

Year   Cash Flow   Cumulative Cash Flow    Cash Flow  Cumulative Cash Flow

0 (A)   -$10,000      -$10,000 (B)                     -$10,000        -$10,000 (B)

1           $12,000 (C)      2,000                           $10,000(C)                 0

2              8,000         10,000                               6,000             6,000

3              6,000         16,000                              16,000           22,000

Payback period for project A = 0 + ($10,000 ÷ 12,000) = 0 + 0.833 = 0.83 year

Payback period for project B = 0 + ($10,000 ÷ 10,000) = 0 + 1 = 1 year

X-treme Vitamin Company should choose project A because it can return the investment earlier than project B.

Requirement B

We can use excel to find the Net Present Value for both the projects with a cost of capital of 10%.

The following image shows the NPV for project A and B.

From the calculation of NPV, X-treme Vitamin Company should choose project B as that project yields more present cash flows.

Requirement C

A firm should generally have more confidence in answer b because money can produce more logical sense than a year. Yes, it is easy to understand how many years a company will need to get back its cash flow. Still, the present value of cash flows provides a more specific evaluation of how to utilize the initial investment.

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The goal of recruitment is to obtain a pool of applicants large enough to contain a number of talented prospects. group of answe
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The goal of recruitment is to acquire a pool of candidates massive sufficient to include some talented prospects. True

A purpose is an objective or goal that someone is making an attempt to attain or achieve. The goal is likewise the cease point of a race or something that a participant is trying to put an item into as a part of a game. purpose has other senses as a noun. A goal is an intention or objective that you work toward with attempt and determination.

Lifestyle goals are what we need to obtain, and they may be a lot more meaningful than simply 'what we need to accomplish to live to tell the tale. not like everyday routines or quick-time period targets, they drive our behaviors over the long term.

The definition of a goal is something you aspire to do or wish to do or an aim can refer to scoring a point in certain sporting events. An instance of aim is you decide which you need to get out of debt. An example of aim is whilst you get the p.c. into the opposing crew's net in hockey.

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Could delta implement self-tagging, whereby passengers put destination tags on their own bags, and would that help the baggage p
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