All categories

3 years ago

If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct?

Business

1 answer:

Lady bird [3.3K]3 years ago

7 0

Answer:

a. liabilities are $32,000

Explanation:

Note: In question part $75,000 shall represent equity, as there are only 3 parts of balance sheet assets, equity and liabilities, if assets are given liabilities is what we need to calculate the missing is equity.

Thus, $75,000 is treated as equity.

In that case we have,

Assets = Equity + Liabilities

$107,000 = $75,000 + Liabilities

Assets - Equity = Liabilities

$107,000 - $75,000 = Liabilities

$32,000 = Liabilities

Therefore, correct option is

a. liabilities are $32,000

You might be interested in

What are the United Nations Human Rights Council

Savatey [412]

The Human Rights Council is an inter-governmental body within the United Nations system made up of 47 States responsible for the promotion and protection of all human rights around the globe.

3 0

3 years ago

Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock opti

muminat

Answer:

1.$12,000,000

2.31-Dec-2021

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

31-Dec-2022

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

Explanation:

1.)

Total compensation cost of stock options = Estimated fair market value of the option x Number of options granted

=$3 x 4,000,000 shares

=$12,000,000

Therefore total compensation cost of stock options is $12,000,000

2. to 4.) Journal Entries

31-Dec-2021

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

31-Dec-2022

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

Compensation expense

= Total compensation cost of stock options/Vesting period

=$12,000,000/2 years

=$6,000,000

3 0

4 years ago

The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.

arsen [322]

Answer:

Explanation:

a. QXd = 1,200 – 3PX – 0.1PZ

Pz = $300 and Px = $140, plugging the values, we get,

Qx = 1200 – 3*140 – 0.1*300.

Qx = 750 units.

Elasticity of demand = \deltaQx/\deltaPx * Px/Qx.

\deltaQx/\deltaPx = -3.

E = -3 * 140/750.

E = -0.56

The elasticity of demand is INELASTIC because the absolute value of elasticity is less than one. If the firm charges a price below $140it might lose out in revenue because the percentage change in demand is less than the price.

b. Px = $240, substituting this into the equation we get

Qx = 1200 – 3*240 – 0.1*300

Qx = 450 units.

E = -3 * 240/450.

E = -1.6

The demand is elastic because the absolute value is less than one. If the firm charges a price above $240 it might lose out on its revenue because the percent change in demand is more than the price.

c. Cross price elasticity of demand Es = \deltaQx/\deltaPz * Pz/Qx.

\deltaQx/\deltaPz = -0.1

Es = -0.1 * 300/750.

Es = -0.04

The goods are complements of each other. As the price of one increases, the demand for other would fall, and vice-versa is true.

4 0

3 years ago

A company issued 60 shares of $100 par value common stock for $7,000 cash.

jolli1 [7]

Answer:

b) Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.

Explanation:

When shares are issued and paid for, the entries required are debit to cash account and a credit to common stock. However, when the amount received is higher than the par value of the stock issued, the excess received is recorded as a share premium or Paid-in Capital in Excess of Par Value.

As such, where the par value is $100 and 60 shares were issued, value of common stock issued

= $100 * 60

= $6,000

Paid-in Capital in Excess of Par Value = $7,000 - $6,000

= $1,000

4 0

4 years ago

Clear, ambiguous acceptance criteria for all deliverables are important because they are the basis for verifying that the projec

AVprozaik [17]

<span>This statement is false. Ambiguous acceptance criteria would be unclear, as the word ambiguous implies that the criteria is unclear and can be interpreted multiple ways. Clear, unambiguous acceptance criteria would ensure that the customer's requirements were only interpreted how they were expected.</span>

3 0

3 years ago