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tresset_1 [31]
3 years ago
7

Wright, Bell, and Edison are partners and share income in a 2:5:3 ratio. The partnership's capital balances are as follows: Wrig

ht, $33,000, Bell $27,000 and Edison $40,000. Edison decides to withdraw from the partnership, and the partners agree not to revalue the assets upon Edison's retirement. The journal entry to record Edison's June 1 withdrawal from the partnership if Edison is paid $40,000 for his equity is:
Business
1 answer:
Arte-miy333 [17]3 years ago
5 0

Debit Edison, capital $40,000 ; Credit Whitney,capital $40,000

Explanation: There are three golden rules for accountancy out of which for this provided question, the accounting rule is applied as follows:

Debit the receiver and credit the giver.

The reason why this entry is applicable  because capital account is personal account and company's capital account  is making the payment to Edison.

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Return on common stockholders' equity is most closely related to
lakkis [162]

Answer:

The correct option is D

Explanation:

Return on common stockholders' equity also known as ROE which stands for Return on equity ratio, that measures the ability of the firm or company to generate the profits from the investment of shareholders in the company.

Where as Debt to assets ratio, is the one which measures the percentage of aggregate assets of the firm or company which were financed by the creditors.

Therefore, the return on common stockholders' equity is related to the debt to asset ratio.

8 0
3 years ago
Bhakti was recently promoted to a sales management position. She had been an effective representative, but her strengths and edu
KonstantinChe [14]

Answer:

A is the correct answer.

Explanation:

Sales managers are important for improving a company's revenue. Their job is to create a high-performance sales team and achieve revenue forecasts. Sales managers can improve the quality of their employees. A good manager who gets average salespeople knows how to coach, motivate and advise the salespersons, but for improving the managers would have to know what the salesperson would be doing and what are their traits and abilities job candidates will have to success.

6 0
3 years ago
Accounts receivable in an existing business:
Artemon [7]

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>

4 0
3 years ago
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be
Talja [164]

Answer:

a. oligopoly.

b. an economic profit.

c. economic profits will fall.

Explanation:

An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.

Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.

The characteristics of an oligopolistic market structure are;

I. Mutual interdependence between the firms.

II. Market control by many small firms.

III. Difficult entry to new firms.

Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.

Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.

5 0
3 years ago
Chris Co. is considering replacing an old machine. The old machine was purchased for $100,000 and has a book value of $40,000 an
Natali5045456 [20]

Answer:

The answer is letter A.

Explanation:

No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.

3 0
3 years ago
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