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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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Some economists observe that higher profit rates in large oligopolies stem from the greater efficiency arising from _____ in the
Natasha2012 [34]

Some economists study that higher income rates in massive oligopolies stem from the greater performance bobbing up from economies of scale in these large companies.

Oligopoly traits include high barriers to new entry, fee-setting ability, the interdependence of companies, maximized revenues, product differentiation, and non-charge opposition.

Oligopolies motivate good sized Inefficiencies – to the Detriment of purchasers. part of the cause a few economists are hesitant to simply accept the market electricity explanation is the scarcity of facts that lets in them gauge the intensity of competition among corporations.

A competitive situation in which there are only some dealers (of products that may be differentiated but no longer to any great volume); each vendor has a high percentage of the market and can not afford to ignore the actions of the others.

Learn more about oligopolies stem here: brainly.com/question/3005866

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4 0
2 years ago
Check all true statements regarding CMBS:
Stolb23 [73]

Answer: A and D only

Explanation:

CMBS Loan are also referred to as a Conduit Loan, this is a type of real estate loan usually commercial, which is secured by a first-position mortgage on a commercial property. These loans are usually packaged, and sold by a Conduit Lender, commercial banks, investment banks, and syndicates of banks.

Loans in a CMBS are always bigger so they are less in a CMBS deal. Sometimes it’s onlyone loan in a Single Asset (SA) CMBS deal

Prepayments are discouraged in CMBS through defeasance,prepayment penalties or yield maintenance fees.

5 0
3 years ago
Read 2 more answers
Samantha makes $250.00 a week and saves 10% of her paycheck each week. How much will she save in 12 months
lozanna [386]

Answer:

7

Explanation:

9867=7

7 0
3 years ago
Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an
Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 =  291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0
3 years ago
Does having social responsibility make you viewed more or less favorable by consumers?
enot [183]

Answer:

Depends on the person but probably not

Explanation:

6 0
3 years ago
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