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krek1111 [17]
3 years ago
8

Lakeland Consulting purchased computer equipment for $10,000. Lakeland made a $2,000 down payment with the balance due within 90

days. The effect of the transaction is a(n): Multiple Choice Decrease in assets of $2,000, an increase in liabilities of $8,000, and an increase in owner's equity of $10,000
Business
1 answer:
natta225 [31]3 years ago
3 0

Answer:

Increase in assets of $8,000 and an increase in liabilities $8,000

Explanation:

The effect of the transaction is shown below with the help of the accounting equation

Liabilities + Owner equity = Assets

$8,000       + 0                        = $8,000

($10,000 - $2,000)

Therefore from the above calculation,  we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity

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<span>If the figure of 1.5 represents the debt ratio of the firm then it can be inferred that the liabilities of the firm greatly exceed current assets. Without further information as to the values of Computronics, inc. current assets and liabilities the price at which the firm can sell its assets cannot be computed. However it can be stated that the firm must sell current assets at a premium of 50% of the value of the assets in order to recoup the debt of its current liabilities.</span>
8 0
3 years ago
If there were 70000 pounds of raw materials on hand on January 1, 100000 pounds are desired for inventory at January 31, and 250
vlabodo [156]

Answer:

280,000 pounds

Explanation:

The computation of the purchase of raw material is shown below:

= Ending inventory + production required - beginning inventory

= 100,000 pounds + 250,000 pounds - 70,000 pounds

= 280,000 pounds

We simply added the required production and deducted the beginning inventory to the ending inventory so that the correct pounds can be calculated

6 0
3 years ago
As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and con
lana [24]

Answer:

Economic Dimension

Explanation:

Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.

In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.

The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.

Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.

Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.

How a company monitor and prepare for each of the three factors will determine its success or failure.

4 0
3 years ago
Which of the following describes the expected outcome of expansionary monetary policy in the short run?
Vaselesa [24]

Answer:

The correct answer is letter "A": higher employment, higher output, and a higher price level.

Explanation:

Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.

7 0
3 years ago
An economic model is useful only if it: ______________
finlep [7]

Answer:

b. contains no positive statements.

5 0
3 years ago
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