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Ksivusya [100]
2 years ago
5

Of the following sets of accounting entries, which one correctly records the purchase of a piece of equipment? A : a $15,000 inc

rease in cash and a $15,000 decrease in equipment, both entered on the same date B : a $5,000 decrease in cash, a $15,000 increase in notes payable, and a $20,000 increase in equipment, all entered on the same date C : a $14,000 decrease in cash, a $4,000 increase in notes payable, and a $10,000 increase in equipment, all entered on the same date D : a $16,000 decrease in notes payable and a $16,000 increase in equipment, both entered on the same date
Business
1 answer:
Butoxors [25]2 years ago
3 0

Answer: The correct answer is  B : a $5,000 decrease in cash, a $15,000 increase in notes payable, and a $20,000 increase in equipment, all entered on the same date.

Explanation: The option B is correct because we are accounting for a purchase of a piece of equipment. The options in the questions show that the purchase was partly through cash and partly through notes payable. Since that is the case, the appropriate entries should record a cash outflow (credit to cash to decrease it), increase in notes payable as a result (credit to notes payable to increase) and subsequently, increase in equipment (debit to equipment). <em>So, the total credits equal the total debit.</em>

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Answer:

The correct answer is letter "B": A car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells.

Explanation:

A tying agreement is the type of contractual arrangement where a seller offers other(s) product for the purchase of one good as a part of only one bundle. The secondary product might not be necessary but the seller offers it mainly to generate more profit. Tying arrangements are considered anti-competitive practices.

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2 years ago
What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the
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Answer: $32.05

Explanation:

Beta = 0.7

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Since, Required return = risk free rate + beta × (market rate - risk free rate)

We will then slot in the values and.this will be:

= 3% + 0.7 × (10% - 3%)

= 3% + (0.7 × 7%)

= 3% + 4.9%

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The price of the stock will then be:

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4 0
3 years ago
Why does the credit card company set the minimum payment so low
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Answer:

To increase profit from interests by increasing duration of balance repayment.

Explanation:

The purpose of every business is to make profits and the reason why every credit card company includes a minimum payment is not just to make it easier to pay but by only making minimum payments, credit card holders could be kept as customers and paying interests on debt for longer.

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3 years ago
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,500. Budgeted cash rec
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Answer:

$12,500

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Budgeted cash disbursements are the payments that the company expects to make in a specific period of time.

$19,500+190,500-191,000= 19,000

Then, you have to subtract 19,000 from 31,500 to determine the amount that the company needs to attain its desired ending cash balance:

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According to this, the company should borrow $12,500.

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Licensee mike was owed a commission from seller jane. jane has refused to make payment. The recourse licensee mike has is he can seek damages from his broker.

A sales commission is typically an amount paid to an employee upon completion of a task for the sale of a specified quantity of goods or services. Employers sometimes use sales commissions as an incentive to increase employee productivity. Commissions may be paid in addition to or in lieu of salary.

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