All categories

3 years ago

Select a transaction that effects the accounting equation as follows:________

Business

1 answer:

faltersainse [42]3 years ago

8 0

Answer:

A. The company pays cash toward an account payable.

Decreases an asset and decreases a liability.

B. The company purchases equipment on credit.

Increases an asset and increases a liability.

C. The owner invests cash in the business in exchange for its common stock.

Increases an asset and increases equity.

D. The company pays cash dividends to shareholders.

Decreases an asset and decreases equity.

E. The company purchases supplies for cash.

Increases an asset and decreases an asset.

F. The company provides services for cash.

Increases an asset and decreases an asset.

Explanation:

A. The company pays cash toward an account payable.

Decreases an asset and decreases a liability.

When a company pays cash - an asset is decreasing because cash is a current asset and it is flowing out; while 'account payable' which is a current liability, is being settled - hence reducing

B. The company purchases equipment on credit.

Increases an asset and increases a liability.

When a company purchases equipment on credit - an asset is increasing because equipment is a fixed asset and it is coming in; while 'account payable' which is a current liability, is being generated - hence increasing

C. The owner invests cash in the business in exchange for its common stock.

Increases an asset and increases equity.

When a company owner invests into the business - an asset is increasing because cash is a current asset and it is coming in; while 'Equity' which is common stock, is being generated - hence increasing

D. The company pays cash dividends to shareholders.

Decreases an asset and decreases equity.

When a company pays dividends - an asset is decreasing because cash is a current asset and it is going out; while 'retained earnings' which is part of equity, is being reduced.

E. The company purchases supplies for cash.

Increases an asset and decreases an asset.

When a company purchases supplies on credit - an asset is increasing because 'inventory' is a current asset and it is coming in; while 'cash' which is also an asset, is being paid out - hence decreasing

F. The company provides services for cash.

Increases an asset and decreases an asset.

When a company provides service for cash - an asset is increasing because cash which is a current asset is coming in; while 'cash' which is a current asset, is being paid out at the same time for salaries to employees who rendered the service to the client - hence decreasing

You might be interested in

One major benefit of using the Bank Feeds feature in QuickBooks Online is that as you _________________ or __________________ tr

Alex73 [517]

Answer:

1. Exclude

2. Add

3. Reconciled

Explanation:

QuickBooks Online supports Bank feeds features, which in turn allows a user to perform ADDITION or EXCLUSION of transactions online, which results in such transaction are marked RECONCILED.

Hence, one of the major benefits of using the Bank Feeds feature in QuickBooks Online is that as you EXCLUDE or ADD transactions in QuickBooks Online from the downloaded transactions from the bank, they are marked RECONCILED. This makes the end-of-period bank reconciliation more efficient.

8 0

3 years ago

You have been appointed head of marketing for Barry's Younique Yachts. Barry, the CEO, is interested in determining whether offe

Zielflug [23.3K]

Answer:

that he should reduce his prices. Yachts are luxury goods and therefore exhibit a high price elasticity of demand. Thus, reducing prices would increase revenue.

Explanation:

Luxury goods usually have a high elasticity of demand when compared with necessity goods which are highly inelastic.

An elastic demand means that a change in price would have a considerable impact on quantity demanded.

Therefore, if the price of the yachts which is a luxury good with high elasticity is reduced, demand for yachts would increase and revenue would increase.

7 0

3 years ago

Please check my answer. I picked A.

yawa3891 [41]

You're correct. Because the definition of a franchise business is "A franchise is a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company."

7 0

3 years ago

Dan has a personal umbrella policy with a $1 million limit. The self-insured retention is $250. Dan has a homeowners policy with

alekssr [168]

Answer:

The personal umbrella policy is excess liability insurance that provides protection against legal liability that is over and above that provided by auto, home, and boat insurance. People with significant assets need an umbrella liability policy to cover lawsuits that can sometimes amount to millions of dollars.

The umbrella policy also has broad coverage that covers some claims that wouldn't be covered at all by home and auto insurance, such as personal injury lawsuits arising from false arrest, slander and libel, or rental units that the insured may own. Not only is the cost of direct damages covered, but also the cost of consequential damages, such as the lost income suffered by a severely injured person because of the injuries. The personal umbrella policy also pays for the legal defense of lawsuits that is in addition to the policy limit for damages. So if you are sued and held liable for $1 million, and your legal costs are $200,000, then a policy providing $1 million of coverage will pay the full claim plus the $200,000 for legal costs.

Explanation:

5 0

4 years ago

Under which circumstance might you receive a tax refund from the irs

Nikolay [14]

You would receive a tax refund from the IRS if you paid too much in taxes versus what your net income was during the year. The taxes owed is less than what was paid to the IRS during the year. If you receive credits for what you are able to deduct from your net income, then you will be able to receive money back at the end of the year for over paying during the year.

8 0

4 years ago

Read 2 more answers