All categories

3 years ago

Describe business transaction that will do the following.

Business

1 answer:

xenn [34]3 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.

You might be interested in

Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi

frez [133]

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

3 0

3 years ago

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for i

hoa [83]

Answer:

$3,260

Explanation:

Preparation of December statement of cash flows for Ernst Consulting

ERNST CONSULTING Income Statement

For Month Ended October 31

REVENUES

Consulting fees earned $17,450

Total revenues $17,450

EXPENSES

Rent expense $4,530

Salaries expense $8,090

Telephone expense $880

Miscellaneous expenses $690

Total expenses $14,190

Net income $3,260

($17,450-$14,190)

Therefore December statement of cash flows for Ernst Consulting will be $3,260

5 0

3 years ago

Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses

Murljashka [212]

Answer:

$88.75

Explanation:

Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses a credit card to pay. If Customer World earned $90 from a sale and the transaction fee was $1.25, the Customer World should expect $88.75 to be deposited into his business bank account by the credit card company.

I hope the answer is helpful.

Thanks for helping.

3 0

3 years ago

What is the minimum price per unit that would produce a positive contribution margin? if required, round your answer to two deci

nikdorinn [45]

You need to provide figures for an answer to be calculated.

8 0

3 years ago

Who believed that fluctuations in the business cycle were the result of class conflicts between labor and capital

Gennadij [26K]

Answer:

Karl Marx

Explanation:

Karl Marx was a German economist that lived in the 19th century. His definition of capital as the most important factor of production was actually quite accurate and advanced for his time. He was the first major economist to state that capital by itself was enough to generate wealth.

He also proposed socialism as the higher stage of capitalism, which actually works in many European nations which are considered social democracies, e.g. Sweden, Norway, Denmark, Holland, Germany, etc., and at the same have the highest standards of living in the world.

Personally, I believe that his major flaw was to go a few steps further and believe in communism and that it would solve all of humanity's problems. Communism is not the same of socialism, since socialism believes in an economy under the influence of the state but also supports individual merit and private property. E.g. someone that works hard should be paid more, i.e. personal wealth is not bad. On the other hand, communism believes that the state must control the economy and that individuals should be rewarded based on their needs, not their work. It doesn't matter if you work hard or not even work at all, the state must satisfy your needs.

6 0

3 years ago