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crimeas [40]
3 years ago
7

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

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Match the definition with the term.
RSB [31]

Answer:

a. It is a collection of all accounts with their activity and balances that exist in a business.  - A general ledger

The General Ledger is the central record in an accounting system and contains a record of all financial transactions in the company.

b. It is a book of original entry that includes a chronological record of all transactions that Have occurred within a business during a period occurred. - A Journal

When a transaction takes place in a business, it is recorded first in a Journal. As such, a journal contains a chronological record of all transactions that have occurred within a business during a period occurred.

c. It is a list of each account and its balance at any given time and is used to verify that debits = credits . - Trial Balance

The Trial Balance helps a business balance its debits and credits by listing them so then equating them to verify that indeed the debits match the credits.

d. It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account . - A chart of accounts

3 0
3 years ago
The NEC® arose as a consensus of more than 1200 individuals primarily to ____.
labwork [276]

NEC arose to:

d.standardize equipment use as a marketing tool

Explanation:

NEC Corporation is a multinational IT and Electronics firm that is based out of Japan.

It was started in the 60s as Nippon Electric company ltd. but it re branded itself to name NEC in 1983.

It is responsible for the standardization of equipment as their USP and their prime marketing tool and made it a standard industry practice to do so as of now.

Their impact on the whole industry has been immense.

7 0
2 years ago
Consider the multi-factor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are respectively 5% an
Llana [10]

Answer:

Option (B) 5.5%

Explanation:

Data provided in the question :

Factor             Risk premium

Factor 1               5%

Factor 2              3%

Beta of stock A on factor 1 = 1.4

Beta of stock A on factor 2 = 0.5

Expected return = 14%

Now,

Expected return

= Risk free rate + (Beta of factor 1 × Risk premium of factor 1) + (Beta of factor 2 × Risk premium of factor 2)

or

14% = Risk free rate + (1.4 × 5%) + (0.5 × 3%)

or

14% = Risk free rate + ( 7% + 1.5% )

or

Risk free rate = 5.5%

Hence,

Option (B) 5.5%

6 0
3 years ago
Most viewers of the sitcom Blonde Dream also watch Euphony, a music-based reality show, which is broadcast immediately after Blo
Sphinxa [80]

Answer:

The correct answer is letter "C": duplicated reach.

Explanation:

Duplicated reach refers to an advertisement that could have been seen by the same individual in the audience through different mediums. The activity receives the name of duplicated reach but the promotion can reach people through multiple ways such as television, radio, the internet, social media, billboards, to mention a few.

In the example, <em>the Savor chocolate advertisement has a double reach since it is portrayed during the transmission of two different TV shows using one single channel (television).</em>

3 0
3 years ago
Stewart Corporation manufactures solar powered calculators. The company can manufacture 1,100,000 calculators a year at a variab
NeX [460]

Answer:

If the special offer is accepted, the net operating income will decrease in $120,000

Explanation:

Giving the following information:

Total variable cost= $2,200,000

Fixed cost= $1,100,000

Based on management’s projections for next year, 950,000 calculators will be sold at the regular price of $15.00 each. A special order has been received for 230,000 calculators to be sold at a 60% discount off the regular price.

Because the company can't provide the 950,000 units and the 230,000 special offer, the offer will cannibalize sales from the 950,00 units.

Special offer sale price= 15*0.4= $6

Unitary variable cost= 2,200,000/1,100,000= $2 per unit

<u>First, we will calculate the net income without the special offer</u>:

Sales= 950,000*15= 14,250,000

Total variable cost= 950,000*2= (1,900,000)

Contribution margin= 12,350,000

Fixed costs= (1,100,000)

Net operating income= 11,250,000

<u>With the special offer:</u>

Sales= (230,000*6) + (870,000*15)= 14,430,000

Total variable cost= (2,200,000)

Contribution margin= 12,230,000

Fixed costs= (1,100,000)

Net operating income= $11,130,000

If the special offer is accepted, the net operating income will decrease in $120,000

7 0
3 years ago
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