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scoray [572]
3 years ago
8

Which of the following transactions would cause a decrease in both assets and stockholders' equity? A) Paying advertising for th

e current month. B) Purchasing office equipment on account. C) Paying insurance premium for the next two years. D) Providing services to customers on account.
Business
1 answer:
Rainbow [258]3 years ago
5 0

Answer:

A) Paying advertising for the current month

Explanation:

Stockholder equity is the remaining amount of assets available to shareholder after all the liabilities have been paid. Incurring an advertising budget for that month again is going to reduce their equity and also asset likewise because it is an expense.

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A depreciation of the US real exchange rate induces US consumers to buy: __________
Serhud [2]

Answer:

c. more domestic goods and fewer foreign goods

Explanation:

A depreciation of the US real exchange rate induces US consumers to buy <u>more domestic goods and fewer foreign goods </u>. A depreciation of the US real exchange rates would mean a weaker dollar.Thus, domestically produced items become cheaper and imported goods become relatively expensive.

8 0
3 years ago
Assume that the seller owes $80,000 on a loan for the land. After receiving the $298,000 cash in (a), the seller pays the $80,00
Zepler [3.9K]

Answer:

Amount owed on a loan for the land = $80,000

Payment in cash for the loan = $80,000

(1) Assets decreases by $80,000 as cash is used for the payment of loan.

(2) Liabilities also decreases by the $80,000 i.e decrease in liability as the loan is settled down.

(3) Stockholders' equity: There is no change occurred in the seller's stockholders equity.

8 0
3 years ago
Read 2 more answers
Consider the following: Farmer Smith bought seed and fertilizer for $100. He grew wheat that he sold to the Wander Bread Company
Rom4ik [11]

As per the given case, the amount that is added to GDP is $350.

<h3>What do you mean by GDP?</h3>

GDP refers to the measure of all final goods and services that have been bought by the final user produced in the country.

As per the given case, Farmer smith bought seed and fertilizer for $100. He grew wheat that he sold to the wander bread company. Consumers bought the bread from the grocery for $350. Therefore, it was added to the GDP.

So, $350 was added to the GDP.

Learn more about GDP here:

brainly.com/question/15682765

#SPJ1

3 0
2 years ago
Diversification is good for shareholders. So why shouldn't managers acquire firms in different industries to diversify a company
dsp73

Answer:

The definition would be defined in the clarification portion below, according to the particular context.

Explanation:

  • Even before managers accomplish diversification besides trying to create a conglomerate whilst also buying other corporations, it is almost always accomplished at a premium surrounded by white market rates because once shareholders could effectively achieve consolidation according to their own besides investing money throughout multiple organizations.
  • Although it may be more difficult to accurately determine productivity in a conglomerate, authority costs will be lower as well as assets might well be apportioned around through segments incompetently.
7 0
3 years ago
Jose has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must invest $10,0
g100num [7]

Answer: $19963.6

Explanation:

The present value of this investment if the interest rate is 8% would be gotten by using the formula below;

PV = PMT/[r × (1+r)^n / (1+r)^n -1]

PV = 5000[8% × (1+8%)^5 / (1+8%)^5-1

PV = 5000[0.08 + 1.08^5 / 1.08^4

PV = 19963.6

Therefore, the present value of the investment is 19963.6

6 0
3 years ago
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