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3 years ago

What is the impact on the accounting equation when an accounts receivable is collected?

1 answer:

5 0

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Answer for your question!

Because one asset increases and another decreases by the same amount, the accounting equation remains unchanged and in balance, suggests Principles of Accounting. For example, if you collect $100 from an account receivable, cash increases by $100 and accounts receivable decreases by $100.

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The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in respon

gizmo_the_mogwai [7]

Answer:

The correct answer is: Materials Price Variance: Production Manager

Materials Quantity Variance: Purchasing Agent

Explanation:

The production manager had to buy the materials that are commonly used, as this is an item of great importance in the process of converting the materials, since otherwise there is a risk of becoming waste due to their quality. In the case of the variation presented, each manager or person in charge of the area must supervise that the measurements are well calculated, and that the aspects related to the direct process must be effectively ensured for the good of the operation.

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3 years ago

One of the most explosive areas of growth in recent years has been cellular phone networks

Firlakuza [10]

That is a true sentence.

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3 years ago

Read 2 more answers

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash

lys-0071 [83]

Answer:

2021 Balance Sheet

$5,900 Cash

$29,000 Accounts Receivable

$6,500 short-term investments

$69,000 Inventory

$110,400 TOTAL CURRENT ASSETS

$ 165,000 Property, plant, and equipment (net)

$165,000 TOTAL NON CURRENT ASSETS

$275,400 TOTAL ASSETS

$48,000 Accounts Payable

$1,000 Interest Payable

$20,000 Salaries Payable

$69,000 TOTAL CURRENT LIABILITIES

$39,000 Long Term Notes Payable

$39,000 TOTAL NON CURRENT LIABILITIES

$108,000 TOTAL LIABILITIES

$145,000 Paid in Capital

$22,400 Retained Earnings

$167,400 TOTAL EQUITY

$275,400 TOTAL EQUITY + LIABILITIES

Explanation:

To complete the Total Current Assets is necessary to find the Short Term Investments, which is possible to know because the current ratio must be 1,6.

With this information it's possible to know that the total current Asssets are $110,400, and the Short Term Investments are $6,500.

To complete the Balance Sheet we need to know the total Retained Earnings that equilibrate the Accounting equation, that is $22,400.

4 0

3 years ago

Baker Corp. is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker's current ratio now is 3. B

Orlov [11]

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million

Current liabiltiy = 15 Million/3

= 5 Million

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement

(15 + x)/5+x = 2.5

15 + x = 12.5 + 2.5x

2.5 = 1.5x

x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal $15 million

7 0

3 years ago

You have an investment account that started with $3 comma 000 10 years ago and which now has grown to $6 comma 000. a. What an

zloy xaker [14]

Answer:

The correct answer for option (a) is 7.17% and for option (b) is $48,546.69.

Explanation:

According to the scenario, the given data are as follows:

(a) Present value = $3,000

Future value = $6,000

Time period = 10 years

So, we can calculate the annual rate of return by using following formula:

Rate of return = (( FV ÷ PV)^1/t -1)

= (( $6,000 ÷ $3,000)^1/10 -1)

= (2)^0.1 - 1

= 1.07177346254 - 1

= .07177 or 7.17%

(b) Present value = $12,000

Rate of interest (r) = 15%

Time period = 10 year

So, we can calculate the Future value by using following formula:

FV = PV × ( 1+r)^t

= $12,000 × ( 1 + 15%)^10

= $12,000 × 4.04555773571

= $48,546.69

8 0

3 years ago