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marshall27 [118]
3 years ago
9

What are the two fundamental equality requirements of the double-entry accounting system?

Business
1 answer:
AysviL [449]3 years ago
6 0
Debits must = Credits, so if some one bought a $20 sofa, the credit would be the asses, more specifically the cash account because it goes down by $20 and the debit would also be the assets but the furniture, becasue it goes up by $20, 20=20 so debit=credit

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The compensation companies receive for purchasing capital assets is called the return on?
Mamont248 [21]

<u>Return on Investment</u> is the compensation companies receive for purchasing capital assets.

Capital assets are significant pieces of property like houses, automobiles, rental properties, stocks, bonds, and even antiques or works of art. A capital asset for businesses is an asset with a useful life of more than a year that is not intended for sale during normal company operations.

Your investments in the business are the time and money you devote to strengthening your company. The profit you receive from your investments is the return. The ratio of net profit to the entire cost of the investment is how ROI is often defined.

Find out more about compensation

brainly.com/question/28271779

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3 0
2 years ago
Pure monopolists may obtain economic profits in the long run because:a.of advertising.b.of rising average fixed costs.c.marginal
grandymaker [24]

Answer:

The correct answer is option d.

Explanation:

A pure monopoly is a type of market structure where there is only a single firm in the market which is producing a good with no close substitutes. Such a market also has high barriers to entry.  

A pure monopolist can have economic profits in the long run because of barriers to entry.

In the short run, all types of market structures can have positive profits because the short run is too short for new firms to enter.  

But in the long run, if there is no or relatively low barrier to entry, positive profit will attract other firms to join the market. This will reduce profits to zero.  

But the firms cannot enter into a pure monopoly market, so the monopolist can earn positive economic profits in the long run.

6 0
3 years ago
A company's plans to minimize theft and enhance the accuracy of accounting information are referred to as:
Alexandra [31]

Answer:

Internal controls.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls in an organization or a company is to guarantee that losses are eliminated as there's a reliable and an accurate accounting system.

This ultimately implies that, an internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency. Internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

Hence, a company's plans to minimize theft and enhance the accuracy of accounting information are referred to as internal controls.

5 0
3 years ago
Smith entered an oral agreement hiring and authorizing Jones to sell fraudulent identification cards produced by Smith. Smith an
Marina CMI [18]

Explanation:

We have to note an important point here is that, Smith has plan to sell fraudulent identification card through Jones and he has done only Oral agreement.

An oral agreement does not have a proof. Any oral agreement cannot be taken as a proof legally. There must be a proper written agreement required to prove the relationship. There are certain standard too in written agreement.

For Example, agreement written on a normal white paper cannot be accepted. The agreement should be legally signed according the bond paper provided and authorized by the Government.

Considering all the above discussion, Jones stands right.

3 0
3 years ago
The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profi
zmey [24]

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

During the fiscal year 2017, The Lynx Manufacturing Company Received $2,000,000 Profit that helps the company to earn a profit of $5,000,000 in production cost.

This extra saved income in the fiscal year 2017 is called economic profit for the firm.

Therefore, Option "B" is the correct answer to the following situation.

8 0
3 years ago
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