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dem82 [27]
3 years ago
10

Purchase? Stationary of RS 6000 in accounting equation ​

Business
1 answer:
motikmotik3 years ago
6 0

Answer:

see below

Explanation:

Purchase of goods worth Rs 6000 will increase stocks( assets account by Rs 6000 and increase creditor ( liabilities by 6000). The effect on the accounting equation is as below.

The accounting equation is  Assets = Equity + liabilities

Assets  =      Equity  +    liabilities

stocks                              creditors

+ Rs 6000                         +Rs 6000    

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1. Why do firms choose to make large increases in their dividends or start a stock repurchase program?2. Why do firms choose to
sergij07 [2.7K]

Answer with Explanation:

Requirement 1:

The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.

Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.

Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.

Requirement 2:

If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.

Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.

8 0
4 years ago
Lifelong Learning( Veronica takes advantage of all training opportunities offered at her job. She registered and attended worksh
vova2212 [387]

Answer:

Lifelong Learning

Explanation:

This is an example of Lifelong Learning. This term refers to when an individual pursues knowledge in any and all shapes and forms from their own free will. This means that they are voluntarily going after knowledge and taking every opportunity to learn more without being forced to do so. Usually, because they believe that knowledge is power and want to learn because they like to do so. This is exactly, what Veronica is doing by taking full advantage of any opportunity that becomes available for her to learn any new skill.

8 0
3 years ago
Damon Company receives its monthly bank statement, which reports a balance of $1,725. After comparing this to the company’s cash
Fudgin [204]

Answer:

Reconciled bank balance  =  $1475

Explanation:

given data

Bank balance = $1,725

deposits outstanding total = $3,100

checks outstanding total = $3,350

solution

we get here Reconciled bank balance  that is express as

Reconciled bank balance  = Bank balance + total deposits outstanding - total checks outstanding .....................1

put here value and we get

Reconciled bank balance  = $1,725 + $3,100 - $3,350

Reconciled bank balance  =  $1475

8 0
3 years ago
What should you do if your expenses exceed your income?
rusak2 [61]

Definitely not a credit card, as that will only snowball debt.  If your basic expenses exceed income, more money needs to be allocated, and spending needs to be wisely reduced.  Taking out a loan can temporarily help with problems, so I'd say loan.

4 0
3 years ago
Read 2 more answers
Why do we want to go on a Restaurant, if we can go to a Grocery Store or cook at Home? It would be a lot cheeper guaranteed.​
Tems11 [23]

hi !

Explanation:

yes that is correct but we cant cook as good as the cooks restaurant as they are qualified and skilled in cooking. So, though they are unhealthy, we prefer food from restaurants than healthy food made in home .

4 0
3 years ago
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