1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serjik [45]
3 years ago
7

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, the

n the change in equity of the company during the year must have been:
Business
1 answer:
morpeh [17]3 years ago
7 0

Answer:

Increase of $30,000

Explanation:

Increase in Company asset- Increase in liabilities

Increase in Company asset =$55,000

Increase in liabilities =$25,000

Hence:

$55,000 -$25,000

=$30,000

Therefore the change in equity of the company must have an increase of $30,000

You might be interested in
Have you ever financed anything on a short term or long term arrangement? ​
beks73 [17]

Answer:

Financing is a very important part of every business. Firms often need financing to pay for their assets, equipment, and other important items. Financing can be either long-term or short-term. As is obvious, long-term financing is more expensive as compared to short-term financing.

There are different vehicles through which long-term and short-term financing is made available. This chapter deals with the major vehicles of both types of financing.

Explanation:

Long-Term Financing

Long-term financing is usually needed for acquiring new equipment, R&D, cash flow enhancement, and company expansion. Some of the major methods for long-term financing are discussed below.

Equity Financing

Equity financing includes preferred stocks and common stocks. This method is less risky in respect to cash flow commitments. However, equity financing often results in dissolution of share ownership and it also decreases earnings.

The cost associated with equity is generally higher than the cost associated with debt, which is again a deductible expense. Therefore, equity financing can also result in an enhanced hurdle rate that may cancel any reduction in the cash flow risk.

Corporate Bond

A corporate bond is a special kind of bond issued by any corporation to collect money effectively in an aim to expand its business. This tern is usually used for long-term debt instruments that generally have a maturity date after one year after their issue date at the minimum.

Short-Term Financing

Short-term financing with a time duration of up to one year is used to help corporations increase inventory orders, payrolls, and daily supplies. Short-term financing can be done using the following financial instruments −

Commercial Paper

Commercial Paper is an unsecured promissory note with a pre-noted maturity time of 1 to 364 days in the global money market. Originally, it is issued by large corporations to raise money to meet the short-term debt obligations.

It is backed by the bank that issues it or by the corporation that promises to pay the face value on maturity. Firms with excellent credit ratings can sell their commercial papers at a good price.

Asset-backed commercial paper (ABCP) is collateralized by other financial assets. ABCP is a very short-term instrument with 1 and 180 days’ maturity from issuance. ACBCP is typically issued by a bank or other financial institution.

Promissory Note

It is a negotiable instrument where the maker or issuer makes an issue-less promise in writing to pay back a pre-decided sum of money to the payee at a fixed maturity date or on demand of the payee, under specific terms.

6 0
2 years ago
Advertising, personal selling, sales promotion, and public relations are components of:____.
Dafna11 [192]

Advertising, personal selling, sales promotion, and public relations are components of the promotion mix.

The definition of advertising is the business or practice of making something known to the public, usually through some form of paid media. An example of advertising is a company that specializes in designing and executing newspaper advertisements for other companies products.

Definition: Advertising is a means of communicating with users of a product or service. Advertising is defined by the British Advertising Council as a message intended to inform or influence the recipient for a fee paid by the sender. Ads are made to get people to do something.

Learn more about Advertising at

brainly.com/question/1020696

#SPJ4

4 0
2 years ago
What courses does ojt have like eg welding, it have any more​
Neko [114]

Answer:

I like Math and Spanish and alot more like English but I.d.k whats the question so if I am right branliest if not explan in the comm and I will be happy to help

Explanation:

8 0
2 years ago
Mark Company’s balance sheet reported total assets of $754,000, which include: cash, $48,000; accounts receivable, $130,000; lan
muminat

Answer:

d) 1.32

Explanation:

The quick ratio uses only the most liquid current assets.

quick \: ratio = \frac{cash \:and \:cash \:equivalent}{current \:liabilities}

cash 48,000

AR 130,000

Short Term receivable 150,000

<em>Total 328,000</em>

<em><u>Important:</u></em> Sometimes it is enought by subtracting inventory from current assets

Current liabilities

account payable 230,000

short-term notes payable 10,000

unearned revenue 8,000

<em>Total 248,000</em>

<em>Quick Ratio</em>

\frac{328,000}{248,000} = 1.322580645 = 1.32

3 0
3 years ago
Choose all that apply.
denpristay [2]

reasons:

safe

high interest rates

no fees

5 0
3 years ago
Other questions:
  • Miss Kehinde, a kindergarten teacher, attends conferences, reads professional journals and is starting an advanced degree in ear
    15·1 answer
  • Energy that is stored and available to be used later is called
    14·1 answer
  • Which of the following statements about the consideration set is false? Group of answer choices
    6·1 answer
  • Is Dropbox profitable as of June 2010? Are you optimistic about its chances? How does your estimation of Dropbox’s current profi
    12·2 answers
  • Sadie is buying new furniture that costs $560. which is the most cost-effective option? a: credit card with an apr of 18 percent
    7·1 answer
  • Why you guys deleting my stuff p u s s y . Its about math . So again yall know where i can get some fire gas for the low ?
    8·1 answer
  • GMM co. plans to issue annual coupon bonds with 7.5% coupon rate to the public, maturing in 10 years. The face value of the bond
    7·1 answer
  • You have been tasked with advising the dictator of a nation over what he should do to increase the countries GDP. He suggests pr
    14·1 answer
  • According to this video ,what should a good checking account offer for free
    15·1 answer
  • Some __________ ask members/customers to work at the organization for a number of hours a month as part of their duties.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!