All categories

3 years ago

Which of the following statements best represents the reason for the accounting equation?

Business

1 answer:

NikAS [45]3 years ago

3 0

Answer:

c. The total of everything owned by a business must always equal the total of what the business owes to creditors and owners.

Explanation:

In every balance sheet, the accounting equation has used that means

Total assets = Total liabilities + Shareholder equity

The statement of stockholder's equity comprises common stock and retained earnings. And, the balance sheet comprises of the assets and liabilities.

The total assets comprises of current assets, fixed assets and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

And, the total liabilities include current liabilities and the long term liabilities

With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.

Hence, the most appropriate option is c.

You might be interested in

Yuri owns just one ship, he calls it Previt. The ship is worth $25 million dollars. If the ship sinks, Yuri loses $25 million. T

alexandr1967 [171]

Answer:

$745,000

Explanation:

Calculation to determine the maximum amount that Yuri would be willing to pay in order to be fully insured against the risk of losing his ship

First step is to calculate the Expected Utility (√W)

Expected Utility = (98% x √$25,000,000) + (2% x √$0)

Expected Utility = $4,900

Second step is to calculate the Fair premium of insurance policy using this formula

Fair premium of insurance policy = Probability of loss x Size of loss

Let plug in the formula

Fair premium of insurance policy = 2% x $25,000,000

Fair premium of insurance policy = $500,000

Third step is to calculate the Maximum premium using this formula

Maximum premium = Maximum utility - Expected Utility²

Let Plug in the formula

Maximum premium = $25,000,000 - $4,900²

Maximum premium = $25,000,000 - $24,010,000

Maximum premium= $990,000

Now let calculate the Maximum amount willing to pay using this formula

Maximum amount willing to pay = (Fair premium + Maximum premium) / 2

Let plug in the formula

Maximum amount willing to pay= ($ 500,000 + $990,000) / 2

Maximum amount willing to pay=$1,490,000/2

Maximum amount willing to pay= $745,000

Therefore the maximum amount that Yuri would be willing to pay in order to be fully insured against the risk of losing his ship is $745,000

5 0

3 years ago

Chris Anderson bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the dealer at an APR of 8.6 pe

Step2247 [10]

0.111 annual interest rate pay. Made monthly

6 0

3 years ago

Joe's boss, Jessica, catches him taking money from the office coffee fund. Joe explains he was not stealing, but rather getting

babunello [35]

Answer: Denial of victim

Explanation: Denial of victim is used when the crime is viewed as a punishment or revenge towards a deserving person. This technique may be used by those who attack homosexuals or minority groups. “They deserve it.” This is also glorified in the stories about the character Robin Hood and his actions involving stealing from the rich. Denial of Responsibility is when a criminal argues that they were a victim of circumstance and had no other choice but to commit the crime; that the crime was not their fault.

3 0

3 years ago

EB11.

GarryVolchara [31]

Answer:

Using High and Low Method

Cost Miles

High 1,250 4,000

Low <u>(970) </u> <u>(3,000)</u>

Variable cost per mile = $2,800/1,000

=$0.28 per mile

Explanation:

In this question, there is need to obtain the difference with the highest cost and lowest cost. We also need to calculate the difference between the highest miles and lowest miles. Finally, we will divide the difference in cost by the difference in miles in order to determine the variable cost per mile.

5 0

2 years ago

A bank service charge of $10 would be included on the bank reconciliation as a(n):_____.

iris [78.8K]

A bank service fee of $10 would be included on the bank reconciliation as on the last day of the bank statement

<h2>What exactly does a bank reconciliation include?</h2>

Starting with the bank's ending cash balance, adding any deposits that are currently being made up of the company to the bank, subtracting any checks that haven't yet been cleared by the bank, then either adding or subtracting any other items completes the basic process flow for a bank reconciliation.

<h3>A bank reconciliation is what?</h3>

At the conclusion of every month, a business should perform a bank reconciliation, which is that the process of confirming the correctness of both the bank statement and the cash accounts.

The most frequent reasons why the ending bank balance and ending book balance of cash differ.

Learn more about bank reconciliation :

brainly.com/question/15525383

#SPJ4

7 0

1 year ago