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sveticcg [70]
2 years ago
5

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recrea

tional Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300. A. Recreational vehicle value decreasing to $100,000 b. Borrowing $10,000 more in loans c. Withdrawing $20,000 from the retirement fund d. Adding $1,000 in credit card debt Please select the best answer from the choices provided A B C D.
Business
1 answer:
Usimov [2.4K]2 years ago
8 0

Given what we know, we can confirm that in order to achieve a net worth of exactly 100 thousand dollars, the correct approach would be option D, to add 1,000 dollars in <u>credit card </u>debt.

<h3>Why would this result in the desired net worth?</h3>
  • When adding the initial net worth, we need to <u>add </u>assets and then <u>subtract </u>the liabilities.
  • Assets are anything that adds positive value to our balance sheet.
  • Meanwhile, liabilities are those which add negative values, such as debt.
  • The initial net worth adds up to 101 thousand.
  • Therefore, to reduce this to 100 thousand we must add a thousand in liabilities.

Therefore, given that all the previous balances resulted in a net worth of 101 thousand, and our desired net worth is 100 thousand, we needed to add one thousand in liabilities, which is achieved with the credit card debt addition.

To learn more about net worth visit:

brainly.com/question/12294231?referrer=searchResults

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Which of the following actions can be an example of a signal designed to reduce the impact of asymmetric information? A. A money
VladimirAG [237]

Answer: Option (A) is correct.

Explanation:

From the given options, the following actions can be an example of signal designed to reduce the impact of asymmetric information: <em>Money-back guarantee.</em>

A money-back guarantee can be referred to as an essential that guarantee, if a consumer/individual is not satisfied with commodity or service, refund to the respective account will be made. Money-back guarantee reduces the impact of asymmetric information between a consumer and seller.

5 0
3 years ago
On October 1, Year 1, Jason Company paid $7,200 to lease office space for one year beginning immediately. What is the amount of
victus00 [196]

Answer:

The amount of rent expense that will be reported on the Year 1 income statement is $1,800 .

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.

Explanation:

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence  

Monthly amortization = $7,200/12 = $600

Rent expense for year 1 = $600 × 3 = $1,800

The ending balance in the prepaid rent account will be  

= $7,200 - $1,800

= $5,400

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

6 0
3 years ago
Which statement concerning process cost accounting is correct?  
GalinKa [24]
I think the answer is C. Individual work in the process accounts are maintained for each production department of manufacturing process. 
6 0
3 years ago
Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $160,000 on December 31, 2018. During the year, the co
bezimeni [28]

Answer:

The answer is $215,000

Explanation:

Cost of goods sold equal:

Opening/beginning inventory plus purchases minus closing/ending inventory

To find beginning inventory at January 1, 2018, lets rearrange the formula:

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Therefore, beginning inventory at January 1, 2018 is

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3 0
3 years ago
Zoey Bella Company has a payroll of $9,440 for a five-day workweek. Its employees are paid each Friday for the five-day workweek
Ratling [72]

Answer:

Dr Salaries expense $7,552

Cr Accrued salaries $7,552

Being entries to record salaries payable as at year end

Explanation:

When an expense is incurred but yet to be paid by an organization, the entries required are

Dr Expense (p/l)

Cr Accrued expense (B/s)

when payment is made

Dr Accrued expense (B/s)

Cr Cash account

Given that Zoey Bella Company has a payroll of $9,440 for a five-day workweek and the year ends on a Thursday. As such, the company  as at 31 December has incurred salaries for 4 days. This has to be accrued for but first to calculate the amount

= 4/5 * $9,440

= $7,552

Hence adjusting entry required on December 31, assuming the year ends on a Thursday

Dr Salaries expense $7,552

Cr Accrued salaries $7,552

Being entries to record salaries payable as at year end

7 0
2 years ago
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