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4 years ago

A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4

Business

1 answer:

kicyunya [14]4 years ago

6 0

Answer:

It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.

Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.

The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.

In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.

What liabilities does the business have after all transactions have been recorded?

the only liability account is accounts payable with a credit balance of $24,700

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If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is

olasank [31]

Answer:

Because of economies and diseconomies of scale.

Explanation:

Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

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3 years ago

In a major metropolitan area, there are many coffee shops, but one chain has gained a large market share because customers feel

Nata [24]

Answer:

In a major metropolitan area, there are many coffee shops, but one chain has gained a large market share because customers feel its coffee tastes better than its competitors'. - Differentiated product. Monopolistic competition.

The product is differentiated because it is not a perfect substitute for its competitors, since it is seen as being of higher quality than the rest.

The market structure is monopolistic competition because while there are many firms in the market, they do not sell prefect substitutes, and as a result, the market is sensitive to the rise of one of the companies.

There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who has passed inspections can acquire and maintain their license. - Standardized. Perfect Competition.

The pasta producers sell a product that is a perfect substitute, that is why restaurant buy whichever pasta is the cheapest.

The market value is reached in Perfect Competition because there are many firms in the market, the products are perfect substitutes, and few if any barriers to entry and exit.

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The product is standarized because it essentially has the same qualities, and consumers view all airlines as providing basically the same service.

The market structure is oligopoly because the market only has three firms, and no new firms can enter the market (barriers to entry).

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The product is an unique type of drug, that is why it was granted a patent.

The market structure is a monopoly because only one firm sells a product that does not have any substitutes.

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3 years ago

e-Shop, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $610,000. Calculate the days' sa

mina [271]

Answer:

The days' sales in receivables are B.148.37 days

Explanation:

The days' sales in receivables is calculated by using following formula:

The number of days' sales in receivables = 365/Accounts receivable turnover

In there:

Accounts receivable turnover = Net Credit Sales /Average Accounts Receivable

E-Shop, Inc. has net sales on account of $1,500,000 and average net accounts receivable of $610,000.

Accounts receivable turnover = $1,500,000/$610,000 = 2.46 times

The number of days' sales in receivables = 365/2.46 = 148.37 days

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3 years ago

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NeX [460]

Answer:

a, b

regions and countries.

Explanation:

Often termed <u>global marketing strategy</u>, involves bridging the cultural gap by producing advertising that appeals to countries from several different regions in the world.

Disney is a good example of a company that uses a global marketing strategy, another example is Coca-cola because of irrespective of the regions they produce products that appeal to their consumers.

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3 years ago

Jim paid $250,000 for an apartment building with a fair market value of $260,000. At the time of the sale, the building was appr

Nimfa-mama [501]

The amount of $225,000 will be the would be the basis of the apartment building for income tax purposes.

Basically, the cost basis is the purchase cost which is $225,000.

The fair market value and appraised cost does not have anything to do with tax basis for income tax purposes.

In conclusion, the amount of $225,000 will be the would be the basis of the apartment building for income tax purposes