A because if you bought a car you would have good credit score
hope this helped
I'll say D or A....But I'm pretty sure it's A
Answer:
Increase in assets of $8,000 and an increase in liabilities $8,000
Explanation:
The effect of the transaction is shown below with the help of the accounting equation
Liabilities + Owner equity = Assets
$8,000 + 0 = $8,000
($10,000 - $2,000)
Therefore from the above calculation, we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity
Answer:
a) yes
b) no
c) yes
d) no
Explanation:
a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow
b) this is the opposite as (a) here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand
c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.
If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.
d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.
Answer:
c. Are the excess of the book value over the cash proceeds.
Explanation:
The property, plant, and equipment are classified as the fixed assets which are reported in the asset side of the balance sheet
If the cash sales of property, plant, and equipment are sold more than the book value then it would be the gain.
But if the cash sales of property, plant, and equipment is sold less than the book value than it would be the loss to the company.
