All categories

3 years ago

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

1 answer:

5 0

DONT TRUST THAT LINK! IT IS USED TO STEAL PERSONAL INFORMATION! Report any links people give you.

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.

You might be interested in

Chester's balance sheet has $86,386,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,00

DaniilM [7]

Answer:

$88,386,000

Explanation:

The computation of the chester book value is shown below:

= Equity balance + decrease in assets in the next year - increased in liabilities for the next year

where,

Equity balance is $86,386,000

Decrease in assets is $4,000,000

Increased in liabilities $2,000,000

Now place these values to the above formula

So, the book value is

= $86,386,000 + $4,000,000 - $2,000,000

= $88,386,000

6 0

3 years ago

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organiz

LenKa [72]

Answer: D. Common stock

Explanation:

Common stock refers to the security which represents ownership in a corporation.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.

3 0

2 years ago

What are the elements of a compensation package

sammy [17]

well there is 10 key elements of a compensation package which are..

base salary

annual/ quarterly bonus

other bonus

stock options

stock units

401k contribution

health and wellness

life and accident insurance

other insurance

perks

8 0

3 years ago

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc

lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

=0.50(78,260.87)+0.50(101,739.13)

=$90,000

So the answer is B) $90,000

5 0

3 years ago

Which strategy is an example of how companies may upgrade themselves to meet changing customer preferences?

never [62]

The best example of how companies are upgrading themselves to meet changing customer preferences is personified in option (C) making online shopping services available.

Since customers nowadays prefer to shop online more often than not, many companies are now providing online marketplaces in combination with their traditional brick and mortar stores. Some companies do not even have a pop up store – they purely do their transactions online.

8 0

3 years ago