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iogann1982 [59]
2 years ago
12

When using the accounting equation, recording the purchase of equipment for cash would include an increase to the (Cash/Equipmen

t/Supplies) account and a decrease to the (Cash/Equipment/Supplies) account.
Business
1 answer:
Fiesta28 [93]2 years ago
7 0

Answer:

Equipment account increases , and cash decreases with same amount

Explanation:

In the case of acquisition of a new equipment , the equipment account is debited (increase) while the cash account is credit with the same amount of money used for the purchase .

Purchase of an equipment is a balance sheet item , which means it is recorded in the balance sheet and not the income statement as it is not an expense.

The asset register must also be updated with the value of the newly acquired item

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Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from opera
-Dominant- [34]

Answer:

Option D) The company's depreciation and amortization expenses declined

Explanation:

When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence,  in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,  

Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.

8 0
2 years ago
After researching the competitors of EJH​ Enterprises, you determine that most comparable firms have the following valuation​ ra
Vera_Pavlovna [14]

Answer:

The range consistent with both sets would be $34.00 to $37.40. This includes the smallest value that is within both the P/E and EV/EBITDA ranges ($34) and the highest value within both ranges ($37.40)

4 0
2 years ago
A company purchased a commercial dishwasher by paying cash of $5,000. The dishwasher's fair value on the date of the purchase wa
Fed [463]

Answer:

$5,700

Explanation:

Purchased of a commercial dishwasher + Incurred transportation costs+ Installation fees= Total recorded amounts

$5,000 + $400 + $300 = $5,700.

Therefore the amount that the company will record the dishwasher is $5,700 because the parking ticket should be expensed as incurred due to the fact that it is not a cost necessary to get the asset ready for use.

7 0
3 years ago
Although transaction costs are reasonable, ASI has encountered financial problems with high production costs. Jonathan, a vetera
marshall27 [118]

Answer: B2B

Explanation:

Based on the information given, we can infer that the interaction of the employee with ASI is an example of B2B..

Business-to-business simply means a form of transaction that is done between businesses, such as between a manufacturer and the wholesaler. It doesn't take place between the producer and the consumer.

7 0
2 years ago
Sunland Company compiled the following financial information as of December 31, 2017: Service revenue $842000 Common stock 17700
posledela

Answer:

555,000

Explanation:

Sunlad assets on December 31 2017 can be calculated as follows

= equipment + cash + supplies + account receivables

= 229,000 + 203,000 + 33,000+ 90,000

= 555,000

Hence Sunland total assets in December 31 2017 is 555,000

7 0
3 years ago
Read 2 more answers
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