If a company uses $1,510 of its cash to purchase supplies, the effect on the accounting equation would be One asset increases $1,510 and another asset decreases $1,510, causing no effect.
The relationship between an entity's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone for double-entry bookkeeping. The total debits and total credit for each transaction are equal.
There are three possible arrangements for the accounting equation:
- Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses.
- Owner's equity = Assets - Liabilities.
- Net Worth = Assets - Liabilities.
The accounting equation makes sure that every entry in the books and records is verified and that each obligation (or expense) and its associated source, or each item of revenue (or asset) and its source, can be independently verified.
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Answer:
Less than today is the correct answer.
Explanation:
Group of answer choices.
A) value of all foods and services produced in the economy this year.
B) bought by consumers.
C) value of all goods and services produced in the economy this year.
D) the base year's prices.
E) this year's prices.
Answer:
Find answers below.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
Real gross domestic product (Real GDP) may be adjusted for price level changes using a price index. This simply means, it is adjusted for inflation to measure the value of goods and services produced by a country in a specific period of time.
Mathematically, 
1. The GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy this year using this year's prices by the value of all foods and services produced in the economy this year using the base year's prices and multiplying by 100.
However, the CPI reflects only the prices of all goods and services bought by consumers.
2. CPI: A decrease in the price of a Treewood handsaw, a popular chainsaw manufactured by Harvestwood Equipment in Bottleneck Springs, Arkansas.
3. GDP Deflator: An increase in the price of a Chinese-made phone that is popular among U.S. consumers.
Answer:
C
Explanation:
The perfect competitive market theory states that in the long run the marginal income is equal to the marginal cost. This happens because there are not barriers to entry and all firms face the same costs. If one or more firms are having benefits, which means that the price is higher than the marginal cost, then other firms will enter to the market and prices will drop. The marginal cost is the additional cost of producing an extra unit of output, in this case the problem is giving us this information by providing the ATC (additional total cost). Then, in the long run the equilibrium price will be equal to $1.25.
Answer:
Results are below.
Explanation:
Giving the following information:
Each sculpture requires 8 pounds of direct materials for $2 per pound
The company's policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement.
Beginning inventory= 6,180 pounds
<u>To calculate direct material purchases, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
<u>March:</u>
Purchases= 4,100*8 + (4,700*8)*0.2 - 6,180
Purchases= 34,140 pounds
Direct material busget= 34,140*2= $68,280
<u>April:</u>
Purchases= 4,700*8 + (5,500*8)*0.2 - 7,520
Purchases= 38,880
Direct material budget= 38,880*2= $77,760
