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
Alexxandr [17]
3 years ago
7

If assets have decreased by $4,000, or stockholders' equity has increased by $4,000, then total liabilities must have A : increa

sed by $2,000. B : increased by $4,000. C : decreased by $4,000. D : decreased by $2,000.
Business
1 answer:
patriot [66]3 years ago
5 0

Answer:

C : decreased by $4,000

Explanation:

As we know that

The accounting equation is

Total assets = Total liabilities + stockholder equity

To balance the balance sheet we use the accounting equation

That means the total assets is equal to the sum of the total liabilities and the stockholder equity

Since in the given situation, the assets decreased by $4,000 or if the stockholder equity has increased by $4,000 so the total assets must also decreased by $4,000 itself

You might be interested in
Measures to ensure environmental sustainability
mars1129 [50]
The planet has decayed to the point of species getting to be noticeably terminated each day. No man's lands exist inside our seas, not very many rain woods remain, and essential natural surroundings for creatures have everything except vanished. Contamination and brown haze are perilous issues to humanity, harmful cancer-causing agents are in the water supply, the air, and the air thusly, sullying the crisp nourishments we eat each day.
3 0
2 years ago
The demand for one of X Company’s products has declined in recent years. The product is manufactured using designated equipment
Scrat [10]

Answer: $230,000

Explanation:

In our case,

Undiscounted future cash inflows from the sale of the product = $ 600,000 and

Carrying value of the asset = $ 720,000.

We can come to a conclusion that the benefit we get from the sale of the asset is less that carrying value.

Hence, the asset is said to be impaired.

Therefore,

Impairment Loss = Carrying value - Fair value of the asset

                            = 720,000 - 490,000

                            = $230,000.

6 0
3 years ago
Suppose Rocky Brands has earnings per share of ​$2.33 and EBITDA of ​$29.3 million. The firm also has 5.3 million shares outstan
posledela

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

= (7.1 × $29.3 million) - $125 million

= 208.03 - $125 million

= 83.03

There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.

3 0
3 years ago
Which of the following scenarios is an example of monopolistic competition?
daser333 [38]
B.
The bus company has monopoly over the bus service in the town because it has no competitors.
7 0
2 years ago
Read 2 more answers
The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi
Finger [1]

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

8 0
3 years ago
Other questions:
  • Imagine that you are looking for a job as a interior decorator. Describe four specific ways that you could look for job leads
    14·2 answers
  • Why do economists generally favor deregulation of most industries?
    12·1 answer
  • When Sewsavor developed a food delivery application, a majority of people started using and recommending the application. Howeve
    8·1 answer
  • On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
    14·1 answer
  • A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical integration, the company is plann
    15·1 answer
  • Your credit card history is tracked by all of the following except:
    12·1 answer
  • Scratch Miniature Golf and Driving Range Inc. was opened on March 1 by Scott Verplank. The following selected events and transac
    14·1 answer
  • Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value pr
    6·1 answer
  • A firm has experienced a constant annual rate of dividend growth of 7 percent on its common stock and expects the dividend per s
    7·1 answer
  • Profit Suppose that the daily profit (in dollars) from the production and sale of x units of a product is given byP180xx21000200
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!