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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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Assignment Details
Brrunno [24]

Lego the most beautiful product which targets two different consumer segments or may be more,A danish based company best selling construction toy in the planet to make these sets it takes years to design and development which enables the portal to kids from the age of 3 to a civil engineer in is 40s. It take is simple logic building blocks children spent 5 billion hours on Lego and why is it interesting is because with 6 pieces of 8 studded blocks a person can built 915 million different combinations. It may not be fascinating for the kids but the adults love new challenges. Lego there is a brand called as Technic which makes the Lego come to life.

Lego Duplo is for the the kids between 2-5, Lego Classic is for kids , Lego creator is for 7 to 12 years Lego Technic can range 11 to 16 Lego creator which is 16 + age so this is how communication has been made for each target.

Explanation:

Marketing mix or the 4p's of marketing Price,Promotion, Product and Placement.

Consumer Segment are comprises of the age group a category that people are influenced to buy a certain product example Coca-Cola is mostly drank by elderly people but Pepsi is drank buy youngster at the adolescent age.

Communication is important as to it implies on a way it has been presented it could be either by social media or by google or pamphlets etc.

3 0
3 years ago
_________________ based vpns are appropriate when the endpoints are controlled by different organizations and network administra
sergij07 [2.7K]
<span>Software vpns are often the choice when connecting different organizations and network administrators. This choice is led by two factors. Software vpns are less expensive and offer easier and more flexible configuration</span>
8 0
3 years ago
A hotel that includes amenities like breakfast is an example of _____.
boyakko [2]
Two-diamond accommodations
3 0
3 years ago
Suppose Spain produces only cars and trucks. The resources that are used in the production of these two goods are not specialize
Mrac [35]
The correct answer is C. remains constant

If production costs for both are equal, then it is completely the same what the demand is great for, since the cost will always be the same for them. If people want 3 cars and 2 trucks, it will be the same as if they wanted 4 trucks and 1 car.
7 0
3 years ago
Which of the following is true about a "credit"?a) It is part of the double-entry procedure that keeps the accounting equation i
Sav [38]

Answer:

All of them.

Explanation:

Accounting systems are designed to show the increases and decreases in each financial statement item as a separate record. This record is called an account. In the T account, the debit is on the left and the credit is on the right.

The equity for credits and debits for each transaction is build into the accounting equation: assets = liabilities + equity. Because of this doble equality, this system is called double entry accounting system.

In balance sheet accounts:

-asset accounts debit for increases and credit for decreases.

-liability accounts debit for decreases and credit for increases.

-equity accounts debit for decreases and credit for increases.

6 0
3 years ago
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