The sales budget must be prepared before any other component of the operating budget.

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

Firdavs [7]

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.

8 0

3 years ago

The legal definition of "small business" varies by country and by industry. In the United States, the Small Business Administrat

tamaranim1 [39]

Answer:

Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.

Explanation:

1. Better technology for the business.

Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.

2. Better capital management.

Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.

3. Tax benefits

Leasing is tax deductible. Reducing the fiscal pressure over the small business.

6 0

3 years ago

Jessica owns a small trading company. The company buys small vending machines from a manufacturer and sells them to the a retail

djyliett [7]

The anwser is c just took the test

7 0

3 years ago

PA9.

meriva

Complete Question:

PA9.

LO 7.3 Fit band's estimated sales are:

$

OCTOBER 131,982

NOVEMBER 195,723

DECEMBER 249,283

JANUARY 124,298

FEBRUARY 124,284

MARCH 124,373

What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?

Answer:

JANUARY FEBRUARY MARCH

Amount received from November sales 19,572

Amount received from December sales 62,321 24,928

Amount received from January sales 80,794 31,075 12,430

Amount received from November sales 31,071

TOTAL $162,687 $56,003 $43,501

Explanation:

The balances calculated are based on the following formula:

Amount received = Sales Figure of that month * Percentage

65% in the month of sale is received, 25% in the next month and the residual is received in the second month after sales

For the month of November:

65% of its total sales will be received in november, 25% in the next month(December) and the residual 10% in the second month after sale(January). Likewise for the month of January, we see in the computation that 65% of sales was received in the same month, 25% in the next month February and the residual 10% in the second after sale which is in March.

3 0

3 years ago

What do virtually all "phishing" emails have in common?

solmaris [256]

Phishing is one of the most prevalent of all Internet scams. Phishing scams attempt to trick people into providing sensitive personal information such as credit card or banking details. What is common is that you receive an email with an urgent or time-sensitive message requesting them to act immediately.

5 0

3 years ago

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