1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spin [16.1K]
2 years ago
5

Delta Company performed $20,000 of services on account and recorded the amount due as a typical account receivable. Over time, i

t became apparent that the customer would not be able to pay quickly, so Delta required the customer to sign a six-month, 11 percent promissory note on February 1, Year 2. The company then reclassified the existing account receivable as a note receivable. Which of the following will result from this action?
a. both assets and liabilities decrease.
b. both assets and revenues decrease.
c. revenues decrease and liabilities increase.
d. no impact on the accounting equation.
Business
1 answer:
Llana [10]2 years ago
3 0

Answer:

D) No impact on the accounting equation.

Explanation:

  • Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
  • What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
You might be interested in
An analyst with a national ratings agency is concerned about a firms ability to meet its short term obligations. To evaluate the
Semmy [17]

Answer:

a. Balance Sheet

Explanation:

The balance sheet reports the total assets, total liabilities and stockholder equity.  

The total asset is comprised of the current asset, fixed assets, and the intangible asset

The total liabilities comprise of current liabilities and long term liabilities

The aim to make the balance sheet is to analyze the liquidity, financial performance, position of the company

Whereas the cash flow statement shows the inflow and outflow of cash and the income statement records total revenues and total expenditures.  

8 0
3 years ago
Ghana is the largest exporter of cocoa, while Netherland is the largest importer of cocoa. How have the two participating countr
VladimirAG [237]
I believe the correct answer from the choices listed above is the second option. The two <span>participating countries were benefited by global trade in terms of </span><span>economic growth in both the countries. Hope this answers the question. Have a nice day.</span>
3 0
3 years ago
Read 2 more answers
If the government owes $10.0 trillion and then borrows $700 billion more this year, this leads toa. a debt of $700 billion and a
77julia77 [94]

Answer:

E:  a debt of $10.7 trillion and a deficit of zero.

Explanation:

Deficits are usually financed by debt. Here the government has incurred an extra debt of $700 billion. The previous debt of $10 trillion may have been due to any reason and not necessarily deficit. However, the passage does not state if the extra debt is due to deficit or not. So it is safe to select option E.

Hence, the government has incurred a total debt of $10.7 trillion and a deficit of zero.

7 0
3 years ago
Peak Performance Sporting Goods Company continues to perform well in spite of an economic recession. Company executives credit t
SVETLANKA909090 [29]
Answer is 2,000,000 . I need to add a little more sorry for this sentence
3 0
3 years ago
When units are moved from one processing department to the​ next, the cost associated with those units must also be moved from o
KonstantinChe [14]

These costs​ called as Transferred costs.

<h3><u>Explanation:</u></h3>

The costs that are accumulated during the time of  upstream production process in a firm refers to Transferred costs. These are associated with the goods that are transferred to the next department of a business from one department. With this product there will be a continuation of the production process.

These are semi finished goods that are transferred for the purpose of continuing the production process. When these units are moved form the  processing  department to the next department, these transferred cost will be transferred from one work in process account to the next account.

7 0
3 years ago
Other questions:
  • The annual output and prices of a 3-good economy are shown in the table below. instructions: enter your answers as whole numbers
    13·1 answer
  • The following is not a distinguishing characteristic of a life estate.
    10·1 answer
  • Discuss the reasons why suppliers are sometimes reluctant to share cost information with buyers - particularly during the early
    6·1 answer
  • Greg's agrees to buy hal's sports store on condition that he is approved by first state bank for the financing. this approval is
    11·1 answer
  • Because the !kung villages gather food collectively, they have a lot of free time, which they usually spend doing what?
    15·1 answer
  • The production team of Widget Corp., a furniture manufacturer, has determined the amount of wood, metal, fabric, labor hours, ca
    12·1 answer
  • Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is
    8·1 answer
  • Francine wants to become a school counselor. Which is the academic requirement for this career?
    15·2 answers
  • Rather than relying on inspections to ensure quality, problems should be_____ out of a product or process
    13·1 answer
  • Where have you seen marketing take place?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!