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stiks02 [169]
3 years ago
8

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

that time, what is the value of shareholders' equity
Business
1 answer:
Korvikt [17]3 years ago
6 0

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

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What are tresholds in auditing?​
Greeley [361]

Answer:

:)

Explanation:

The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.

5 0
3 years ago
It is important to shop around for credit because banks and financial institutions have varying credit histories. charge differe
JulsSmile [24]

Answer:

follow different laws

Explanation:

In simple words, Shopping around is really a good idea, whether you're obtaining your first credit account or you've already established credit and want more of it. Searching widely is often the only way to locate a lenders that will cooperate with you. It's also the greatest method to obtain a decent bargain in some instances.

Different creditors have different laws, which affect their terms and conditions regarding interest rate, tenure etc.

8 0
3 years ago
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,874. Cash receipts yet to be de
My name is Ann [436]

Answer:

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

J1

Bank $39 (debit)

Interest Earned $39 (credit)

J2

Bank service fee $28 (debit)

Bank $28 (credit)

Explanation:

<em>Step 1 Bring the Cash Balance in the Cash Book up to date</em>

Debit :

Balance as at August 31, 2021,                                   $7,874

Interest Earned                                                                 $39

Totals                                                                            $7,913

Credit:                  

Bank service fee                                                              $28

Balance Up dated (Balancing figure)                         $7,885

Totals                                                                            $7,913

<em>Step 2 Prepare the Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

6 0
3 years ago
Which term best completes the outline?
Strike441 [17]

Answer:

C. Market.

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.

Basically, there are four (4) main types of economy and these are;

I. Mixed economy.

II. Command economy.

III. Traditional economy.

IV. Free market economy.

A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.

The four (4) main elements or characteristics of a free enterprise system includes the following;

a. Profit: businesses are all out to generate revenue and profit through the sales of finished goods.

b. Economic freedom: means of production of goods and services are controlled by the people rather than the government. Thus, the producers are free to make their economic choices or decisions such as deciding on how much is to be charged on a product.

c. Private ownership of properties: the various factors of production are owned and allocated by the people. Thus, citizens have rights to the ownership and use of private property.

d. Competition: there are many buyers and sellers of homogeneous products, as well as free entry and exit in the market. Thus, consumers are free to make their economic choices or decisions such as deciding on which product to buy, which goods interest them, where to shop for goods, etc.

In conclusion, a market is characterized by the following economy;

I. Economic freedom

II. Competition between businesses

III. Decisions motivated by profit

5 0
3 years ago
Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will
patriot [66]

Answer:

C) The market learing price may rise, fall, or stay the same, but the equilibrium quantity will rise. 

Explanation:

An increase in demand would lead to an increase in demand and price.

An increase in supply would lead to an increase in supply and a fall in price.

The combined effect would lead to an increase in equilibrium quantity but the effect on equilibrium price would be indeterminate.

I hope my answer helps you

6 0
3 years ago
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