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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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Unrealized holding gains or losses which are recognized in income are from debt securities classified as
Serga [27]

Answer:

Trading.

Explanation:

In Business management, when a gain or loss is realized, it simply means that the owner of stock or other securities has sold it. Thus, these unrealized gains or losses are generally referred to as paper profits or losses.

Basically, when the value of a stock being bought by an investor reduces (falls) while he or she is yet to sell it, it is known as an unrealized loss.

However, when the value of a stock being bought by an investor rises (increases) while he or she is yet to sell it, it is known as an unrealized gains.

Hence, unrealized holding gains or losses which are recognized in income are from debt securities classified as trading.

3 0
2 years ago
Every society faces​ trade-offs because we live in a world of scarcity. Suppose a​ student-athlete has the opportunity to earn ​
Leokris [45]

Answer: Opportunity cost of returning to college next year is $1,000,000.

Explanation: Opportunity cost is the cost of the next best alternative sacrificed or foregone. When the athlete chooses to join college he is sacrificing his income that could be earned from playing the game. The player has the option of playing for the minor league baseball team for $1,000,000 or for European professional football team for ​$500,000. The person thus has a choice between playing for the minor league baseball team (since it is the highest paying) or going to college. Thus the opportunity cost of going to college will be $1,000,000.

8 0
2 years ago
Read 2 more answers
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweate
torisob [31]

Answer:

A

Explanation:

The country with a comparative advantage in the production of a good should export the good

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

England

Comparative advantage in the production of scones = 1/50 = 0.02

Comparative advantage in the production of sweater = 50/1 = 50

Scotland

Comparative advantage in the production of scones = 2/40 =  0.05

Comparative advantage in the production of sweater = 40/2 = 20

England has a comparative advantage in the production of scones and should export scones

Scotland  has a comparative advantage in the production of sweaters and should export sweaters

7 0
2 years ago
Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity has a coupon rate of 6%. The
velikii [3]

Answer:

Value of treasury note = 738000

Explanation:

Value of treasury note = Interest * PVAF(9.9%,5Years) + Maturity Value * PVF(9.9%,5year)

= 30000 * 3.800 + 1000000 * 0.624

= 738000

3 0
2 years ago
Which of the following factors does not affect the initial market price of a stock?
MissTica

Answer:

The correct answer is (C)

Explanation:

Generally the common stocks worth per share is normally a limited quantity, for example, $0.05 or $0.01 and it has no association with the market estimation of the price of stock. The standard worth is once in a while referred to as the regular stocks.  The par value has no connection with the price of the stock.

7 0
3 years ago
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