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3 years ago

Olav owns precision painting, a sole proprietorship. olav's liability is

Business

1 answer:

MakcuM [25]3 years ago

6 0

Answer:

The answer is D.

Explanation:

A sole proprietorship is a one man business( it is owned and run by one man). Sole proprietorship is not a distinct business entity i.e there is no legal distinction between the owner and the business entity.

Because the business is not separated from its owner, he or she can be liable for the debt of the business. The sole proprietorship can be sued directly for any bad debt the business incurs. This is what unlimited liability means and it is the main disadvantage of of sole proprietorship.

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Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60.

victus00 [196]

Answer:

D) Cash 45,540 Accounts receivable 45,540

Explanation:

The journal entry is shown below:

Cash A/c Dr $45,540

To Accounts receivable A/c $45,540

(Being cash is received in respect of goods sold)

The computation is shown below:

= Sold value of supplies - the sold value of supplies × discount percentage

= $46,000 - $46,000 × 1%

= $46,000 - $460

= $45,540

Since the net method is used so we debited the cash account and credited the account receivable account.

8 0

3 years ago

The substitution effect of an increase in the price of Raisin Bran refers to Select one: a. the decrease in the demand for Raisi

EleoNora [17]

Answer:

the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.

Explanation:

the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.

If the price of the good increases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.

The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.

5 0

3 years ago

The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves

Hitman42 [59]

Answer: Procedures

Explanation:

From the given case/scenario, we can state that the standing plan can be referred to as procedures. A procedure is referred to as a document or act that is written in order to support a policy. It is mostly designed in order to describe where,who, what, when, and why through means of building corporate accountability in inclination to implementation of the policy.

8 0

3 years ago

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a

umka2103 [35]

Answer:

Cash Flow

year 1: cash generated in operating activities: 35,000

year 2: cash used in operating activities (28,000)

Receivables:

year 1: 23,000

year 2: 40,000

Net Income

year 1: 32,000

year 2: 59,000

Explanation:

Cash flow:

operating activities: year 1

collected from client 170,000

salaries paid to employees (100,000)

utilities (35,000)

insurance policy (63,000)

cash used in operating activities (28,000)

operating activities: year 2

collected from client 200,000

salaries paid to employees (110,000)

utilities (55,000)

cash generated in operating activities: 35,000

receivable:

billed - collected

year 1 receivables 193,000 - 170,000 = 23,000

year 2 receivables 240,000 - 200,000 = 40,000

Income Statement year 1

fees revenues 193,000

salaries (100,000)

utilities (40,000) (incurred cost)

insurance (21,000) (63,000 for three years, the value of 1 year is 21,000)

net income 32,000

Income Statement year 2

fees revenues 240,000

salaries (110,000)

utilities (50,000) (incurred cost)

insurance (21,000) (63,000 for three years, the value of 1 year is 21,000)

net income 59,000

5 0

3 years ago

A company is obligated to pay its creditors $6,100 at the end of the year. If the value of the company's assets equals $5,800 at

Korvikt [17]

Answer:

The value of shareholders' equity is -$300

Explanation:

Shareholders' equity is the corporation's owners' residual claim on assets after debts have been paid.

Total assets= Total liability + shareholders' equity

Shareholders' equity = Total assets - Total liability

Shareholders' equity = $5,800 - $6,100

Shareholders' equity = -$300

6 0

3 years ago