All categories

3 years ago

When cash is received from a sale, the total amount of both assets and owner's equity is increased.

Business

1 answer:

marshall27 [118]3 years ago

5 0

Answer:

a. True

Explanation:

In case when the cash is received from the sale, so here the total assets is increased i.e. rise in current assets that is cash account and the stockholder equity is also increased as the revenue is also increased which ultimately increased the equity

The journal entry is

Cash Dr XXXXX

To Sales revenue XXXXX

(Being cash is received is recorded)

hence, the given statement is true

You might be interested in

Loan Term - Interest Rate - Monthly Payment24 months - 2.5% - $342.08 36 months - 3% - $232.65 48 months - 4% - $180.63 60 month

a_sh-v [17]

Answer:

Option B 36 months

Explanation:

The reason is that it meets both the budget requirement which is it must be under $250 and must be the one that pays the principle and the interest amount as quickly as possible. So if Markel choses the option with monthly instalments made within 36 which is under $250 then it will also enable him to pay his liabilities as early as possible.

8 0

3 years ago

Concord has the following inventory information. July 1 Beginning Inventory 30 units at $15 $450 7 Purchases 90 units at $23 207

serg [7]

Answer:

COGS= $2,060

Explanation:

Giving the following information:

July 1: Beginning Inventory 30 units at $15 $450

July 7: Purchases 90 units at $23 2070

July 22: Purchases 10 units at $20 200

Ending inventory in units0 30 units

<u>First, we need to calculate the number of units sold:</u>

Units sold= total units - ending inventory in units

Units sold= 130 - 30

Units sold= 100

<u>Now, to calculate the cost of goods sold under the FIFO (first-in, first-out), we need to use the cost of the firsts units incorporated into inventory:</u>

COGS= 30*15 + 70*23

COGS= $2,060

4 0

3 years ago

Can somebody help me find a pattern in these numbers?

Papessa [141]

1 and 5 would be the numbers

3 0

3 years ago

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o

gladu [14]

Answer:

The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1

If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.

16x+ 6(1-x)=10

16x+6-6x=10

10x=4

x=4/10

x= 0.4

This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %

(0.4*16)+(0.6*6)= Rate of return

Rate of return=10%

10% of 1000 = 100

100+1000=$1100

Explanation:

7 0

3 years ago

Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually oper

jasenka [17]

Answer:

Continue with old machine

Explanation:

Differential Analysis

Continue with Old Machine (Alt.1)or Replace Old Machine (Alt.2

May-04

Continue with Old Replace Old Diff. effects Machine (Alt. 1) Machine (Alt.2) (Alt. 2)

Revenues:

Sale ( 5 years) 803,500 803,500 0

Costs:

Purchase price 0 -105,500 105,500

Direct materials -274,000 -274,000 0

( 5 years)

Direct labor -190,000 0 -190,000

( 5 years)

Power and -17,500 -94,000 76,500

maintenance

Taxes, insurance -6,500 -21,000 14,500

etc ( 5 years)

Selling and -190,000 -190,000 0

administrative

expense ( 5 years)

Total expenses -678,000 -684,500 6,500

Profit (Loss) $125,500 $119,000 $6,500

Hence it is advantageous to continue with old machine. Net incremental advantage of continuing with old machine = $6,500

6 0

3 years ago