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Sphinxa [80]
3 years ago
14

Assume a company buys a machine worth $1 million and pays for it by borrowing the funds from a bank. The firm's assets will rise

by $1 million and its liabilities will also rise by $1 million. Owners' equity will not change.a. true.b. false.
Business
1 answer:
FinnZ [79.3K]3 years ago
6 0

Answer:

True

Explanation:

When machine is purchased, then the assets increase by the carrying or purchase value of the machine purchased. Here, it is of $1 million.

Further, when it is purchased as against any credit, it creates a liability with the same amount.

Since here also the liability amount = $1 million, it will be recorded with the same.

As there is no involvement of Equity or Retained earnings this do not lay any impact on carrying value of owners equity.

Thus, it is True.

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Genrish500 [490]

Answer:

A bad idea, as A2 is not on the critical path.

Explanation:

Critical path is a path which is the shortest path of doing the activity.

When an activity is in critical path, then there is a benefit of crashing it. Or if it is not the part of critical path then the benefit is to crash the activity and then apply the spare resources in some activity which is a part of critical path.

Thus, crashing A2 which is not a part of critical path and then not deploying the resources on to the activities of critical path will not provide for any benefit.

It is ultimately not a wise idea.

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4 years ago
Nancy is a highly respected person within her community. she is hispanic in a largely caucasian-populated area. since nancy was
Paladinen [302]

In the case above,  Nancy's right to product options in buying an espresso machine is known as: Consumerism

Consumerism refers to the norm that encourage people to spend their money to buy various type of products. This norm started to popular after the industrial revolution era, which enable companies to produce their products on large scale and require people to buy as much of their products as possible to maintain their operation.

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4 years ago
Avoid introduction of honey until age one because this product may contain ____________ .
sveticcg [70]

Answer:

pyrrolizidine alkaloids

Explanation:

7 0
3 years ago
Read 2 more answers
Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $10 million cash, representing 40% of th
tester [92]

Answer:

$ 10512000

Explanation:

The market value of Madison investment which is the aggregate value of the company's investment =$ 12 million

The book value = assets - liabilities = (1700000 - 419000) ×0.4 = $ 51240

The year-end balance = $ 51240 + $ 10 million = $ 10512000 approx

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4 years ago
Burj khalifa's location
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It is a skycraper that is the tallest artificial structure in the world standing at  829.8 meters or 2, 722 feet.

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