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Jet001 [13]
3 years ago
7

A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment. Which of the follo

wing items would be increased by the bank loan and equipment purchase transactions?(check all that apply) A. Total Assets B. Inventory C. Cash from Financing D. Cash from Investing E. Notes Payable
Business
1 answer:
bogdanovich [222]3 years ago
5 0

Answer:

Lets see what are the double entries of borrowings and purchase of new  manufacturing equipment and their implications:

Double Entry for borrowings:

Dr Bank $500,000

Cr           Notes Payable $500,000

The above double entry shows that the total assets and Notes Payable are increased due to this transaction. Furthermore, in the Statement of Cash flow we see an increase in Cash from Financing activities and decrease in the Cash from investing activities.

The second transaction is purchase of new manufacturing equipment. It must be accounted for as under:

Dr Manufacturing Equipment $500,000

Cr                                               Bank    $500,000        

This transaction shows that net impact on the total assets is same as one asset has been increased by spending the other asset. This transaction also has no impact on Cash for financing, inventories and notes payable balances. However, their is increased negative balance in cash from investing activities.

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he country Grupindor recently experienced a drastic increase in inflation. This led to the depreciation in the value of its curr
GaryK [48]

Answer:

The correct answer is economy of the nation.

Explanation:

Inflation has a consequence in companies, but we can say that it can cause an initial increase in benefits since wages and other costs are modified based on price variations, that is, they are altered once prices They have varied.

This results in increases in dividend payments, interest and capital investment. In addition, many people can increase their spending with the feeling that buying later can be more expensive. But this is the first initial action in some cases.

In this way, inflation at the national level can lead to an improvement in the trade balance if the same amount of goods can be sold but at higher prices. Even in spite of this, it is a value that distorts normal economic activity, since on the other hand it reduces the purchasing power of people and can lead to a reduction in consumption since you can not buy more.

4 0
3 years ago
On September 18, 2019, Rose Company purchased 11,800 shares (14%) of Wozniak, Inc. stock for $42 per share. The market value of
wolverine [178]

Answer:

24

Explanation:

8 0
2 years ago
10 POINTS PLEASE HELP ASAP
saul85 [17]

Answer:

I wanna say D

Explanation:

hope that helps

3 0
3 years ago
When offering financial products to clients, you may:
Anton [14]

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

6 0
2 years ago
Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well
marissa [1.9K]

Answer:

c. the well-being of sellers.

Explanation:

A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence, an export subsidy will increase producer surplus.

In conclusion, producer surplus directly measures the well-being of sellers.

4 0
3 years ago
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