Answer:
The answer is Credit.
Explanation:
Net loss can be thought of as a <u>Credit </u>to the Capital account.
The answer choice that correctly describes the impact of the supplies purchase on the financial statements is A. total assets will remain unchanged.
<h3>What is an Asset? </h3>
This refers to financial property owned by a company or individual that has some degree of value.
Hence, we can see that given the fact that a company purchased supplies for cash that would be used in a few months, this would leave the total assets unchanged.
Read more about assets here:
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Answer:
Debit Cost of Goods Sold $500
Explanation:
When inventory is purchased, debit inventory and credit cash or accounts payable. When inventory is sold, credit inventory (with the cost of inventory sold) and debit cost of goods sold(p/l).
Further more, sales is recognized by crediting sales account and debiting cash or accounts receivables.
As such, if original cost of the merchandise to X-Mart was $500, entries required would include a credit to merchandise inventory $500 and Debit Cost of Goods Sold $500.
A few of the following can be considered major factors in failure of small businesses:
-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.
-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure
-no investment in marketing and research can also be a reason.
