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Virty [35]
3 years ago
6

If a company purchases equipment costing $5,100 on credit, the effect on the accounting equation would be:

Business
1 answer:
alex41 [277]3 years ago
4 0

Answer:

assets increase $5,100 and liabilities increase $5,100

Explanation:

Assets are the items that a company owns which can provide future economic benefit.

Liabilities are future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events, hence Liabilities are what a person or company owe other parties.

If a company purchases equipment costing $5,100 on credit, the assets of the company will increase by $5100 as a result of acquiring an equipment. Also, the liability will increase by $5100 as a result of debt owed.

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Answer:

b. set in when the fifth worker is hired

After this point additional worker return will be lower.

Explanation:

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In other words, adding a new resource provide less return than his predecessor.

Marginal

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3 do 6 houses (marginal 6 - 4 =    2)

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3 years ago
New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny finan
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Please consider the following explanation.

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3 years ago
For each of the following independent events, identify the account that would be debited and the account that would be credited.
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Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

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Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

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Debit: Cash

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C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

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