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3 years ago

What account below is not an asset?

Business

1 answer:

KiRa [710]3 years ago

8 0

Answer:

A. Capital Stock

Explanation:

Accounts are categorized following the accounting equation of assets are equal to equity plus liabilities. Asset accounts track and record the resources that a business owns or controls. Assets being the valuable items that a business uses to generate income or maintain operations.

Equity represents the owner's interest in the business. It comprises capital contributions and retained earnings. Capital stocks belong to equity accounts and not asset accounts.

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BSU Inc. wants to purchase a new machine for $35,500, excluding $1,400 of installation costs. The old machine was bought five ye

RoseWind [281]

Answer:

(a) Payback period: 4.6 years;

(b) IRR: 8.45%;

Explanation:

(a)

We have net investment outlay = Purchase cost of new machine + Installation cost of new machine - Proceed from selling old machine = 35,500 + 1,400 - 2,200 = $34,700

Payback period = Initial investment outlay/ Cost saving per year = 34,700/7,500 = 4.6 years.

(b)

IRR is the discount rate that brings NPV of the project to zero. Thus, we have:

-34,700 + (7,500/IRR) x (1- (1+IRR)^-6) = 0 <=> IRR = 8% (Round to 0 decimal places.

(c)

NPV of the project is calculated at 6% required rate of return as: -34,700+ (7,500/6%) x (1- (1+6%)^-6) = $2,180.

Thus, new machine should be purchased.

5 0

3 years ago

Advertising increases levels of consumer purchase of specific brands which in turn affects gross domestic product. T/F

jeka57 [31]

Answer:

The correct answer is False.

Explanation:

Advertising really tries to increase the purchase levels of products and services, not specific brands. Therefore, this statement is false considering that although all economic transactions affect GDP (positively or negatively), the advertising function is not aligned with its duty.

8 0

3 years ago

Read 2 more answers

Grace Stewart began the Stewart Answering Service in December. The firm provides services for professional people and is current

lakkis [162]

Answer:

Assets = Liabilities plus stockholders' equity = $18,340

Explanation:

(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item. (Note: The beginning Equipment account balance is $0.)

Note: See the attached excel file for the set-up.

(b) Show the impact (increase or decrease) of the January transactions on the beginning balances, and total all columns to show that assets equal liabilities plus stockholders' equity as of January 31.

Note: See the attached excel file for how the impacts are shown and the total of all columns

Also Note: See the lower part of the attached excel file to see that assets equal liabilities plus stockholders' equity as of January 31 where we have:

Assets = Liabilities plus stockholders' equity = $18,340

Download xlsx

6 0

3 years ago

Which of the following would not be considered a plant asset? Multiple Choice Land. Machinery and equipment.

Svet_ta [14]

Answer: None of the above

Explanation:

Plant assets are those assets that a business uses in its operations and that are expected to have a useful life of more than a year. Plant assets are also called Fixed assets.

Land, machinery and equipment are all plant assets as they have a useful life of more than a year and are used in the operations of the business.

6 0

3 years ago

Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accoun

AnnZ [28]

Answer:

$2069

Explanation:

Given

Applied overhead costs of Goods sold = $59,300

Applied overhead cost of finished goods = $38,000

Overhead Balance = $97,300

Overhead Cost = $92,000

Overapplied Overhead = Overhead Balance - Overhead Cost

Overapplied Overhead = $97,300 - $92,000

Overapplied Overhead = $5,300

Allocated Amount = (Applied Overhead * Finished Goods /(Overapplied Overhead)

Allocated Amount = ($5,300 * $38,000) ($59,300 + $38,000)

Allocated Amount = ($5,300 * 38,000) (97,300)

Allocated Amount = $2069

5 0

4 years ago

Read 2 more answers