Answer:
A. capitalize capitalize
Explanation:
All the expenses incurred to make the asset usable are capitalized and those expenses become the part of cost of that assets for which that are incurred. Interest on debt to purchase an asset and in case to construct the asset both are capitalized, because these expenses are essential to make assets usable for the business.
Answer:
D. 189,000 = NA + 189,000 NA - NA = NA 189,000 FA
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity. This may be expressed mathematically as
Assets = Liabilities + Equity
While assets include fixed assets, cash, inventories, account receivables etc, liabilities include accounts payable, loans payable, accrued expenses etc.
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
When 9,000 shares of no-par stock issued for $17 per share increases to $21, this means that the additional amount
= ($21 - $17) × 9000
= $36,000
Amount to be collected from the issue
= $21 × 9000
= $189,000
This will result in an increase in cash and an increase in owners equity (the respective debits and credits).
Answer:
The statement is True.
Explanation:
There are many forms of business. Partnership, limited liability, sole proprietor, commercial, etc. Sole proprietorship is a business that is owned and run by a single person. That person is the owner of the business. We can call him an entrepreneur, or sole proprietor, or single trader, etc. There are many disadvantages of running business individually, as you are the one who is solely responsible for all the liabilities of the business. But at the same time, sole proprietorship has some benefits associated with it for the small business owners. The main advantage of running the business single handed is to enjoy the whole profit made out of the business. When the owner is responsible for all the liabilities of the company, just like that, he is the one who is receiving all the profits from the business. So when business is small, there is no need to divide the small amounts of profits between the shareholders. All the profit is kept by the individual owner.
Answer:
lessen the effect of exchange rate changes by sourcing from where input costs are low
Explanation:
