Answer:
(B) Increase both assets and equity by $180
Explanation:
The transaction analysis model tells us that:
Assets = Liabilities + Owner's Equity
Owner's equity = Contributed Capital + Retained Earnings
Retained Earnings = Net Income − Dividends
and
Net Income = Income − Expenses
The expanded accounting equation is obtain if all substitutions are made:
Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends
In the Global Cleaning Service`s case:
Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.
Answer: A. Go to the Gear icon and select All Lists
Explanation:
QuickBooks online is an accounting software that is used by businesses to make business payments, to pay bills, and can also be utilized to perform payroll functions.
A great feature of QuickBooks Online is that there are other lists that one can use to make it easier to fill i forms and these list can be found in the gear icon where one would then select all lists.
Answer:
The return on assets is 8.4%
Explanation:
In order to calculate the return on assets we will first need to find the average total assets. We will do this by adding the beginning and ending total assets and dividing it by 2.
Average total assets= (31,500+20,500)/2= 26.000
Now in order to find the return on assets we will divide the net income by the average total assets.
Return on assets = 2,200/26,000=0.084=8.4%
Answer: More elastic; Lower
Explanation:
Before the entry of a new firm, there is only one firm exist in the market and that single firm is experiencing a monopoly power. But when there is a entry of its competitor then as a result second firm have to reduce their prices of the products as demand is elastic. We know that market is very sensitive to the prices. This fall in prices will lead to increase the demand for the products but with the lower prices, the marginal revenue of the second firm will be more elastic because of the lower prices.
