I really need Brainliest please it will help me a lot

Which of the following statements explain(s) how the accounting equation applies to businesses? Check all that apply. A. The equ

Levart [38]

Answer:

A, E

Explanation:

The accounting equation states that Assets is the sum of the company's equity and liabilities where assets are the resources owned by the company. Equity refers to the resource the business owes the owners while liabilities are what the creditors (third parties) are owed by the business or company. These items are the elements that make up a company's balance sheet. For the balance sheet to be balanced;

Asset must equal the total of the liabilities and equity. Hence option A is right as well as E. Option B is not right as there are transactions that may be recorded between some elements of the balance sheet and those of the P/L. For instance, training cost incurred by the business paid with cash is between an asset and an expense. For option C, Revenue - Expense gives profit and not assets. The later part of the option is however true. Option D for the same reason as C is also not true.

6 0

3 years ago

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold ev

Solnce55 [7]

Answer:

Explanation:

From the question, we are informed that before the tax, 25 million wine bottles were sold at price of $6 per bottle and that after the tax, 20 million bottles of wine are sold every month and the consumers pay $8 per bottle which include the tax and producers receive $5 per bottle.

The amount of tax on wine will be the difference between the price consumers pay after the tax and the price producers receive. This will be:

= $8 - $5

= $3 per bottle

The tax burden that falls on the consumers will be difference between price paid after tax and the price which is paid before the tax.

= $8 - $6

= $2 per bottle

The tax burden on the producers will be difference between price received before the tax and price received after the tax.

= $6 - $5

= $1 per bottle

5 0

4 years ago

Seventy percent of Pluto Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the

yawa3891 [41]

Answer:

$275,000

Explanation:

month budgeted sales budgeted cash collections

January $200,000 $140,000

February $300,000 $210,000 + $40,000

March $350,000 $245,000 + $60,000 + $20,000

April $250,000 $175,000 + $70,000 + $30,000

the total budgeted cash collections for April = ($250,000 x 70%) + ($350,000 x 20%) + ($300,000 x 10%) = $175,000 + $70,000 + $30,000 = $275,000

6 0

4 years ago

Western auto inc. pays a $1.77 preferred dividend every quarter and will maintain this policy forever. what price should you pa

zhuklara [117]

The answer is $76.54 Let us use 3 months as our period. Thus, we restate the annual required rate of9.25% as a quarterly (or three-month) rate of = 2.3125% (or 0.023125). Applying the constant dividend model with infinite horizon and with the quarterly rate of return and a quarterly dividend of $1.77, we get: = $76.54.

Price of Preferred Stock = Dividend / required return of rate - growth rate

7 0

3 years ago

What does the European Central Bank (ECB) and the Eurogroup manage in economic/monetary terms?

oksian1 [2.3K]

Financial and economic stability is controlled and enforced by the European Central Bank (ECB).

Explanation: 

The main goal is to control markets and to promote economic growth as well as the development of jobs.

Specifies the inflation it loans to the Euro-zone financial institutions, thus regulating money supply and prices.

Managed financial assets of the euro and the sales and acquisition of assets to align market prices.

Secure the European financial framework and maintain its sustainability.

Controlling market trends and assessing controlling inflation threats.

Authorizes Euro coin manufacturing by Euro area countries.

5 0

3 years ago