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
Lelechka [254]
3 years ago
9

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Asset

s increase $4,500 and liabilities decrease $4,500. One asset increases $4,500 and another asset decreases $4,500. Equity decreases $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Assets increase $4,500 and liabilities increase $4,500.
Business
1 answer:
Firdavs [7]3 years ago
8 0

Answer: Assets increase $4,500 and liabilities increase $4,500.

Explanation:

An asset are the properties which a business or an organization owns. An asset possess an economic value.

Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.

You might be interested in
Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? A
skelet666 [1.2K]
<span>Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? Positive incentive. A positive incentive is a value that is given during the performance of a regular behavior. As long as Tina does what she is supposed to her parent's will continue to pay her car insurance. There is a reward for her doing what she </span>should be doing on her own which is motivating her to continue to do it. 
4 0
3 years ago
Read 2 more answers
A company that is unwilling to give up control of the business is in need of additional capital. Would issuing additional stock
svetlana [45]

Answer:

Issuing bonds will be the better option for this company. Mainly because they do not like to give up the control of the company or to change its equity structure.

When the bonds are issued, the company gets the money from the investors and has to pay an agreed amount of interest periodically until maturity of the bond, where the company will have to pay the face value of the bonds.

Explanation:

8 0
2 years ago
2.- Se hicieron compras de materia prima por $ 50,000.00 más IVA que se pagaron como sigue:
cestrela7 [59]

no entendi nadita pero que larga tu prwgunta

5 0
3 years ago
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate
g100num [7]

Answer:

Part 1

Computation of the unit product costs for the two products

                                                         Mercon              Wurcon

Direct materials cost per unit         $ 10.00               $ 8.00

Direct labor cost per unit                 $ 3.00                $ 3.75

Overheads                                         $5.60                 $7.00

Unit product cost                             $18.60               $18.75

<u>Calculation of overhead rate</u>

M = 0.20 × 10,000   = 2,000

W = 0.25 × 40,000 = 10,000

Total hours                       = 12,000

Rate = $336,000 ÷  12,000

        = $28.00

Part 2

Overhead rate for direct labor-hours

Rate = $168,000 ÷ 12,000

        = $14.00

Overhead rate for engineering design time

Rate = $168,000 ÷ 8,000

        = $21.00

Computation of the unit product costs for the two products

                                                         Mercon              Wurcon

Direct materials cost per unit         $ 10.00               $ 8.00

Direct labor cost per unit                 $ 3.00                $ 3.75

Overheads - labor hrs                       $2.80                 $3.50

Overheads - eng time                       $8.40                  $2.10

Unit product cost                             $24.20               $17.35

6 0
2 years ago
Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as
saveliy_v [14]
<span>Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as CONVENTIONAL LOANS. It is a type of loan that has a fixed rate and terms and is usually associated with mortgage. Any government agency (i.e. Federal Housing Administration, Department of Veterans Affairs) does not have any involvement in conventional loans.</span>
6 0
3 years ago
Other questions:
  • Society suffers a deadweight loss in a pure-monopoly market because
    7·1 answer
  • Which of the following jobs is a career in educational support (2 points)
    12·2 answers
  • Mayan Company had net income of $33,480. The weighted-average common shares outstanding were 9,300. The company declared a $4,00
    6·1 answer
  • The management at Dime Corporation is investigating purchasing equipment that would increase sales revenues by $527,000 per year
    12·1 answer
  • Jafina works for a Sunshine Manufacturing, where her team shares a machine and materials with another team that works a differen
    15·2 answers
  • The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent exp
    12·1 answer
  • After identifying and performing the preliminary classification of an organization’s information assets, the analysis phase move
    14·1 answer
  • Logistics Company had the following items listed in its trial balance at 12/31/2021: Balance in checking account, Bank of the Ea
    12·1 answer
  • Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment wa
    6·1 answer
  • Q1. Identify the different types of external and internal trends that have impact on HRM? Give an example of each trends in your
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!