Answer:
running is the answer for your question
Answer:
the answer is "D" Although "A" seems to be the favored method
Answer: a. I made comparisons with others' salaries."
Explanation:
Equity theory simply refers to the principle that the actions of individuals are based on fairness and in a situation whereby there's no fairness or equity, the workers will seek to address such differences.
According to the equity theory, workers believe that everyone who puts in a similar input should get a similar reward. Therefore, in this case since Ted used the equity theory, he'll make a comparison with the salary of others.
In the given transaction Marvin Company has purchased a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the remainder over seven years it means the balance (250000-100000) = 150,000 is a liability for Marvin company.
So there is an Increase in the asset by $250,000 due to purchase of the building and there is a decrease in assets by $100,000 due to the payment of cash. Hence the Net increase in the assets is (250,000-100,000) = $150,000.
And there is an increase in the liabilities by $150,000.
Hence the correct answer is:
d. $150,000 net increase in assets and $150,000 increase in liabilities
Answer:
B. Available for sale securities
Explanation:
Available for sale securities refer to debt or equity instrument. They are purchased with a pre defined aim of selling them before their maturity, for profit earning. Such profit is usually a 'quick capital gain'. Apart from profit, they also assist for liquidity, repaying needs of companies.
These equities are reported at 'fair value'. This implies that unrealised gains & losses are not included in earnings. They are rather recorded in a specific segregated item head 'accumulated other comprehensive income' of shareholder's equity.
