The accounts that affect equity are revenues, common stock, expense, and dividends.
The following information should be relevant for the equity:
- If there is an increase in revenue so the equity is also increased.
- If there is an increase in the common stock so the equity is also increased.
- If the expense is increased so it decreased the equity.
- If the dividend is paid so the equity is decreased
In this way, the equity account is affected.
Learn more about the equity here: brainly.com/question/3841249
Answer:
Financial accounting
Explanation:
The Generally accepted accounting principle (GAAP) is the standard, principles and procedures that accountant must follow or adhere to when compiling financial statements. The major objective of GAAP is to make the accounting process uniform so financial reports are comparable from one company to another.
Answer:
(a)$0
Explanation:
Since the book value is less than the generated future cash flows so there would not be any loss on impairment of the asset
The book value is computed below
= Owns value - accumulated depreciation
= $290,000 - $150,000
= $140,000
The book value is $140,000 and the generated cash flows are $165,000. So, no value would be recognized
Answer:
Kevin has analyzed the situation well. However, he should also consider the fact that he saved $10 by only purchasing the shirt.
Opportunity cost is the cost of the forgone alternative. Out of the 3 choices, he only purchased 1 of the choices, the opportunity cost are the other two choices. However, he is still capable of buying the flip-flops costing $10 but he chose not to do so. He should consider it as a savings aside from it being a lost opportunity.
