What is corporate image or corporate identity

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

Alinara [238K]

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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.

5 0

3 years ago

A stock sells for $6.99 on December 31, providing the seller with a 6% annual return. What was the price of the stock at the beg

Dimas [21]

Answer:

Correct option is 6.59

Explanation:

Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:

$Present\ value\ or\ price\ of\ stock = Selling\ price\left ( \frac{1}{1+i} \right )^{n}$

$= 6.99\left ( \frac{1}{1+0.06} \right )^{1}$

$= \frac{6.99}{1.06}$

= $6.59

Therefore, Stock's price in the beginning of the year is $6.59.

6 0

3 years ago

As rationing mechanisms, prices options: a. are efficient, but long lines are inefficient. b. and long lines are inefficient. c.

valentina_108 [34]

Answer:

a. are efficient, but long lines are inefficient

Explanation:

A rationing mechanism is a system in which who gets how many goods during a shortage is carefully chosen, in order to do these long lines are used even though they are inefficient.

I hope you find this information useful and interesting! Good luck!

4 0

3 years ago

Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28

Gnom [1K]

Answer:

differential cost of producing product C = $24 per pound

Explanation:

given data

B currently selling = $30 per pound

produce cost = $28 per pound

C would sell = $60 per pound

produce additional cost = $24 per pound

to find out

What is the differential cost of producing Product C

solution

we get differential cost of producing product C is express as

differential cost of producing product C = cost of (B+C) - cost of B .............1

put here value we get

differential cost of producing product C = (28+24) - 28

differential cost of producing product C = $24 per pound

3 0

3 years ago

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manuf

Firdavs [7]

Answer:

The machine should be leased because it is cheaper when compared to buying the machine.

Explanation:

To determine which option kiddy should choose , we are to calculate the net present value of buying the machine and the present value of payments thay kiddy would make if they lease the equipment.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-161,000

Cash flow each year from year 1 to 11 = $-6,000

Cash flow in year 12 = $-6,000 + $11,000 = $5,000

I = 11%

NPV = $-196,809.89

Present value of lease payment

Cash flow each year from year 1 to 11 = $-26,000

I = 11%

PV = $-161,369.40

The machine should be leased because it is cheaper when compared to buying the machine.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

Present value can be calculated using the same steps as above

I hope my answer helps you

8 0

3 years ago