Answer:
This is an example of Invisible Hand.
Explanation:
The invisible hand concept describes the individual effort in providing benefit to overall society by his untiring efforts. The market force that helps the demand and supply of goods in a free market to reach equilibrium automatically and providing benefits to its own people.
Answer: $47.50
Explanation:
The Price per share under Plan I can be calculated by the formula;
Price per share = Value of debt / (Number of shares under all-equity plan - Number of shares under Plan)
= 109,250 / ( 15,000 - 12,700)
= 109,250 / 2,300
= $47.50
That statement is false.
They are different. Purchase discounts are given by the sellers to the buyers in order to reduce the amount that the buyers have to pay if they complete the payment within a specific period of time. Trade discount on the other hand, is given by manufacturers to the sellers or re-sellers.
Answer:
Collection of Cash on January 10
The Impact on ABC's accounting equation:
The Assets (Cash) will increase by $30,000 and another type of Assets (Accounts Receivable) will decrease by $30,000.
The collection of cash on January 10 does not affect the other side of the accounting equation.
Explanation:
The accounting equation shows that for every transaction, the Assets will be equal to the Liabilities + Owners' Equity. The explanation is that the financial resources which an entity owns actually belong to either creditors or equity owners in the form of financial obligations (liabilities) or contributed capital plus some parts of the net income over the years which the entity has reinvested in its business.
The accounting equation is the fulcrum of the double-entry accounting system. On a company's balance sheet, the accounting equation shows that assets equal the sum of the company's liabilities and shareholders' equity.
