Answer:
The effect is an increase in the balance of assets by $87,000 and a corresponding increase in the balance of liabilities.
Explanation:
The accounting equation shows the relationship between all the elements of the balance sheet. These are the assets, liabilities and owners equity. It is shown as
Assets = Liabilities + Equity
When a company buys an asset on account, the entries required are debit assets, credit accounts payable. This means that asset increases but so does liabilities balance.
Hence asset increases to
= $624,000 + $87,000
= $711,000
Liabilities also increases to
= $262,000 + $87,000
= $349,000
Answer: a. She fraudulently concealed or destroyed financial records during the course of the bankruptcy.
Explanation:
Fraudulently concealing or destroying financial records during a bankruptcy is one of the chief reasons why a discharge could be DENIED. It proves dishonesty and a lack of remorse.
It is always best to be upfront with the court to avoid getting into such issues.
Other reasons include violating court orders and giving false statements.
Answer:
C. I: assets; II: liabilities.
Explanation:
Assets are the physical and intangible properties of business or individual. They are resources used in generating revenues or profits for a business. Assets add value or increase the capital of a company. Examples of assets include cash, inventory, investments, office equipment, and plant and machinery.
Liabilities are debts or obligations that a firm or individual owe to other entities or individuals. Liabilities decrease the net value of a company. Examples of liabilities include Bank debt, money owed to suppliers (accounts payable), Wages owed, and Mortgage debt.
Cash belonging to a bank but held in another bank account is, therefore, an asset, while money borrowed is a debt, hence a liability.
Answer: $2550
Explanation:
Note that the probabilities of total loss and 50% damage were tripled and the probability of no fire has therefore changed to:
1 - 0006 - 0.024 = 0.97.
The company wants to keep same annual gain from the policy ($750), and the question now is, what would the new premium (N) be which will satisfy this? To get this, we need to solve the equation for:
N:750 = (N - 100,000)(0.006) + (N - 50,000)(0.024) + N(0.97)
Thus, 750 = N - 600 - 1,200, or N - 1,800. Therefore,N= 750+1,800= 2,550.
To account for the added risk which the insurance company is taking by continuing insuring the customer, the premium changes from $1,350 to $2550
