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2 years ago

Describe business transaction that will do the following.

Business

1 answer:

xenn [34]2 years ago

8 0

Answer:

a. Increase an asset and increase liability - BUYING INVENTORY ON ACCOUNT.

Buying inventory on account would have the effect of increasing inventory(asset) whilst increasing Payables (liability) as well.

b. Decrease an asset and decrease liability . - PAYING FOR INVENTORY PURCHASED ON ACCOUNT.

When the company pays the vendor it bought goods from on account, this would reduce cash (asset) whilst reducing payables (liabilities) as well.

c. Decrease an asset and increase an expense . - PAYING FOR ADVETISING.

Paying for advertising would decrease cash (asset) whilst increasing the Advertising expense.

d. Increase an asset and increase owner's equity . - SELLING SHARES.

Selling shares would increase the cash (assets) in the business as people will pay for the shares while at the same time increasing the equity in the business as well.

e. Increase an asset and decrease an asset . - RECEIVABLES PAYING FOR GOODS BOUGHT ON ACCOUNT.

When debtors (receivables) pay off the balance of the goods they purchased from the company on account this would increase the cash (asset) in the business while at the same time reducing the Accounts receivables (also asset) in the company.

f. Increase an asset and increase revenue. - SALE OF GOODS.

Selling goods would either increase the cash (asset) or the Accounts receivable (asset) in a company while also increasing the sales (revenue) of the company as well.

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According to the law of demand, what is the relationship between price and quantity demanded?

Sindrei [870]

Answer:

According to the law of demand, there is a negative or an inverse relationship between the price of the good and the quantity demanded of that good. This means that an increase in the price of a commodity will lead to decrease the quantity demanded for this commodity and a fall in the price of a commodity will lead to an increase in the quantity demanded for this commodity.

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3 years ago

If income decreases and, at the same time, a new technology is discovered that lowers the cost of producing the good, which of t

Fiesta28 [93]

Answer:

b. Cannot tell the change in equilibrium quantity. The equilibrium price will decrease

Explanation:

Two things are going on here

1. Income decreases, that will shift demand inwards. People can buy fewer goods at any given price

2. New technology is discovered, that shifts supply outwards. Costs are reduced so producers can produce more at a given price

The resulting effects are that price will decrease but the result in quantity is undetermined. This can be seen with the two examples attached. In both cases, the shifting of the curves from D0->D1 and S0->S1 results in lower prices. However, in one case the equilibrium quantity goes up and in the other goes up.

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3 years ago

Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market and e

Tanya [424]

Answer:

Explanation:

If these two companies were to behave as individual profit maximizers, both company will advertise regardless of whether the other company advertises or not because their goal primary goal is to increase the profit and domination of the market.

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3 years ago

A man eats chips and dips and burgers and fries, and drinks a couple of shakes. afterward, he goes to the gym and does 90 minute

Nuetrik [128]

The set of assumptions underlying his behavior would lead to a diagnosis of non purging type of bulimia nervosa. A purging type falls under the subtypes of bulimia nervosa in which the guy who is suspected of having a non purging type is having to compensate with binge eating and in the same time, the person compensates dieting with exercising excessively.

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3 years ago

Twenty years ago, you won a state lottery, and you received $15,000 at the end of each of the next 10 years, and $20,000 at the

oksian1 [2.3K]

The value of the amount won at the lottery at the end of 20 years is $723,672.24.

<h3>What is the value at the end of 20 years?
</h3>

The formula for calculating future value of annuities is: yearly amount x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

r = interest rate
n = number of years

Annuity factor for the first ten years = [(1.09^10) - 1] / 0.09 = 15.19293

15.19293 x $15,000 = $227,893.95

Annuity factor for the last 5 years = [(1.09^5) - 1] / 0.09 = 5.9847

5.9847 x 20,000 = $119,694.21

Future value of the lump sum of $227,893.95 in 10 years = $227,893.95 x (1.09^10) = 539,507.86

Future value of the lump sum of $119,694.21 in 5 years = $119,694.21 x (1.09^5) = $184,164.38

Value in year 20 = $184,164.38 + 539,507.86 = $723,672.24

To learn more about annual annuities, please check: brainly.com/question/24108530

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2 years ago