All categories

4 years ago

Definition of net worth ?

Business

2 answers:

Luda [366]4 years ago

8 0

Answer:

Net worth is the measure of the wealth of an entity, person, or corporation, as well as sectors and countries. Simply, net worth is defined as the difference between assets and liabilities. It is an important metric to gauge a company's health and it provides a snapshot of the firm's current financial position.

xeze [42]4 years ago

8 0

Full definition of Net worth: Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities.

You might be interested in

Tracy Company, a manufacturer of air conditioners, sold 270 units to Thomas Company on November 17, 2021. The units have a list

tiny-mole [99]

Answer:

See explanation section

Explanation:

Requirement 1

November 17, 2021 Merchandise Inventory Debit $81,000 (Note - 1)

Accounts payable - Tracy Company Credit $81,000

Calculation - $270 units × $400 = $108,000

$108,000 × (100 - 25)% = $81,000

To record the purchase of office equipment on account with a trade discount and a credit terms of 3/10, n/30. As the company uses perpetual inventory system, merchandise inventory is debit.

November 26, 2021 Accounts payable - Tracy Company Debit $81,000

Cash Credit $78,570

Merchandise Inventory Credit $2,430

As Thomas gave the payment within 10 days, Tracy Company provided a 3% discount according to the terms.

Calculation - $81,000 - ($81,000 × 3)% = $81,000 - 2,430 = $78,570

Requirement 2

If Thomas paid on December 15, 2021, Tracy company would not give any discount. However, Thomas paid within 30 days.

Therefore, the journal entry to record the payment is as follows:

December 15, 2021 Accounts payable - Tracy Company Debit $81,000

Cash Credit $81,000

This time he did not receive the discount as he failed to pay within 10 days to get discount.

7 0

4 years ago

In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at: A) $108,000. B) $90,000

Tanya [424]

Answer:

Answer: b

Explanation:

NRV=$120,000 – ($120,000 x 10%) = $108,000$90,000cost is less than net realizable value of $108,000 cost

5 0

3 years ago

"A dealer buys 10,000 shares of ABC common at $15 for its inventory. One week later the stock is quoted at $18 - $19, and a cust

a_sh-v [17]

Answer: c. $19

Explanation:

Under the FINRA 5% Policy, a fair and reasonable mark-up or commission is based upon the current market price of the stock not how much the dealer bought it for or rather their cost. As such, when the customer buys, which was the case in this scenario, the mark-up is charged on the inside ask price which in this case is $19.

Were the customer to be selling, any mark-downs will be charged on the inside bid price which in this case is $18.

5 0

3 years ago

Machinery purchased for $69,000 by Vaughn Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of

Sliva [168]

Answer:

Prepare the entry to correct the prior years' depreciation, if necessary.

any change in depreciation expense must be done for future events, past events cannot be adjusted

Depreciation expense 2021:

carrying value December 2020 = $69,000 - {[($69,000 - $4,600) / 8] x 5} = $69,000 - $40,250 = $28,750

depreciation expense per year (including 2021) = ($28,750 - $5,175) / 5 = $4,715

3 0

3 years ago

Are specialized accountants who look for evidence of improper

oksian1 [2.3K]

Answer:

A. Forensic accountants

Explanation:

Forensic accountants possess auditing and investigative skills. Their work entails examining financial records and statements in search of evidence for any financial misleading. Forensic accountants are trained and qualified accountants or auditors. They acquire investigative skills through specialized training.

5 0

3 years ago