Wisconsin Company collected $42,000 cash on its accounts receivable. The effects of this transaction are: Multiple Choice Both t
otal assets and equity are unchanged and liabilities increase. Both total assets and total liabilities decrease. Total assets decrease and equity increases. Total assets increase and equity decreases.
Option Total assets, total liabilities, and equity are unchanged.
Explanation:
The reason is that the double entry to record this transaction is as under:
Dr Cash Account $42,000
Cr Accounts Receivable $42,000
Hence there increase in one asset and decrease in other asset will have zero net impact on assets. As equity and liabilities are not effected by the transaction, hence they will also remain unchanged.
It could, as long as it fulfills these two conditions - The products could generate enough profit without the boost that givenn by other channel flows. - The independent operation would not cause a decrease in profit for other channels flow because eventually, business owners only want to do the combination that bring the most profit.
Year Cash Flow Cumulative Cash flow Discounted Cash Flow(8.9%) 0 $5,095,000 $5,095,000 $453,455 1 $1,500,000 $3,595.000 $3,141,5452 $3,000,000 $ 595,000 $141,5453 $4,500,000 ($3,905,000) $3,4515454 $6,500,000ABC Hospital will get ROI in 3 years, this option I would recommend to the CEO.
The sellers in the perfectly competitive market become price takers as they have to sell under the price decided in the market through supply and demand.
This is mainly because there is no way to differentiate the product to change the price. Since all goods are identical, one good is a perfect substitute for another.
