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Elodia [21]
3 years ago
6

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What eff

ect would this transaction have on the accounting equation?
Business
1 answer:
bixtya [17]3 years ago
6 0

Answer:

Assets increase by $5,000 increase, equity  decrease by $5000

Explanation:

The accounting equation is expressed as below.

Assets = Liabilities + shareholders equity

  • Assets are valuable items that the business owns.
  • Liabilities are the debts of the business.
  • Shareholder equity is the owner's capital, plus the retained earnings.

The transaction by Celery Company involves buying supplies valued at $5000 by cash.

  • Since celery paid cash, no liabilities were incurred. The shareholder money (Equity) decreased by $5000.
  • Supplies worth $5000 were acquired.  The suppliers belong to the business; they are valuable items( assets) to the business.

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To obtain the dollar sales volume necessary to attain a given target profit, which of the following formulas should be used? Mul
steposvetlana [31]

Answer:

(Fixed expenses + Target net profit)/Contribution margin ratio

Explanation:

The formula to compute the dollar sales volume for attaining the target profit is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin ratio)

where,

Fixed expenses = Fixed cost

Target profit = The budgeted profit

And, the contribution margin ratio is

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

6 0
3 years ago
Match each of the global business practices with an example of its use.
ArbitrLikvidat [17]

a . Offshoring : A U.S. car company begins making some of its car parts in Bangladesh

Offshoring occurs when a company takes some of its processes to services to another country or countries in order to take advantage of the lower cost conditions prevailing there.

b. Outsourcing: A U.S. car company hires a South Korean company to make its tires.

Outsourcing refers to the practice of procuring products or services from an overseas or foreign supplier instead of obtaining them from a domestic supplier.

c. Insourcing: A Japanese car company opens a factory in the United States

Insourcing refers to the practice of using its own personnel and resources to accomplish its task.

6 0
4 years ago
What is the correct answer...A, B, or C?
Mamont248 [21]
B, to avoid potential liability issues
5 0
4 years ago
Stockholders invest $30,000 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual sa
Black_prince [1.1K]

Answer:

Explanation:

1)

Dr Cash $30,000  

Cr Common Stock  $30,000

2) No Entry  

3)

Dr Office Furniture $3,800  

Cr Accounts Payable  $3,800

6)

Dr Accounts receivables $10,800  

Cr Service Revenue (Commission) $10,800

10)

Dr Cash $140  

Cr Service Revenue (Commission)  $140

27)

Dr Accounts Payable $700  

Cr Cash  $700

30)

Dr Salary Expense $3,000  

Cr Cash  $3,000

8 0
3 years ago
Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zen
dybincka [34]

Answer:

D) or E) (are this the same?) 50 units of grain and 130 units of incense

Explanation:

Agland has an advantage producing Organic grain, and Zealand producing Incense, So:

If Agland specialices in producing organic grain it would produce with 20 workers 200 units of grain a year.

If Zealand specialices in producing Incense, it would produce with 10 workers 150 units of incense a year.

This gives a Total combined output of 200 units of grain and 150 unit of incense a year.

Given that the total current output of the two countries is 150 units of grain and 20 units of incense it would increase in 50 units of grain and 130 units of incense.

8 0
3 years ago
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