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borishaifa [10]
2 years ago
7

What are the effects on the accounting equation from the adjustment for which the seller has satisfied the performance obligatio

n to its buyers during the accounting period that had previously been recorded as a liability?.
Business
1 answer:
hammer [34]2 years ago
5 0

The effect on accounting equation is that total liabilities would decrease and stockholder's equity would increase.

<h3>What is the accounting equation?</h3>

The accounting equation also known as the balance sheet equation relates the assets of a business to its liabilities and stockholders' equity. According to the accounting equation:  Stockholders' equity = Assets - liabilities.

When a liability reduces, stockholder's equity increases. Also, when assets increases, stockholder's equity increases.

To learn more about stockholder’s equity, please check: brainly.com/question/26210654

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The CHS Company paid $48,000 cash to its landlord on November 1, 2016 for rent covering the six-month period from November 1, 20
goldfiish [28.3K]

Answer:

d. Shareholders equity increases $ 16,000

Explanation:

Two months rent needs to be adjusted. The total payment made was for $ 48,000 for a six month period.  The monthly rent is $ 48,000/6 = $ 8,000

The adjustment amount is thus $ 8,000 * 2 months = $ 16,000

The adjusting entry is:

Rent expense                   Debit              $ 16,000

Prepaid rent                      Credit                                   $ 16,000

So this results in decrease in prepayment and an increase in rent expense. \Due to an increase in expenses, the net income decreases by the same amount.

The only option of increase in shareholders equity, is not valid as a reduction in net income shall result in a decrease in shareholders equity.

8 0
3 years ago
Kevin has had a checking account for a month. As he reconciles his account, Kevin notices that the dates on his check register d
Aloiza [94]
We are very sorry we will need proof of your purchases that month so we can change it. When can you make an appointment with us.
3 0
3 years ago
Implementing a marketing plan a. is the starting point of the marketing mix strategy to identify target markets. b. entails gaug
GalinKa [24]

Answer:

Letter a is correct. <u>Is the starting point of the marketing mix strategy to identify target markets.</u>

Explanation:

A marketing plan can be defined as a detailed document that contains the actions that a company must take to achieve its marketing objectives. Through this document, it is possible to carry out a planning for a product, service and brand.

The stage of implementing the marketing plan is the starting point for the company to outline specific marketing strategies, such as the marketing mix, which is a strategic tool used to achieve its marketing objectives in the target market.

The marketing mix model most used by companies is that of 4P: product, square, price and promotion, and for each of the variables there is a set of specific activities that integrated help to achieve objectives and goals.

Therefore, the implementation stage is extremely relevant for the company, it is necessary to adjust expectations in order to set real and possible goals to be achieved in a certain time, it is also important to assemble a team with qualified professionals for the execution of the plan, so that the actions correspond to the organizational values ​​and strategies. Communication is also essential for feedback, new ideas and suggestions.

It is important to note that a marketing plan is changeable, as several factors influence it to evolve and change, so it is necessary to have constant monitoring and evaluation, so that this is an effective strategy for the company.

7 0
4 years ago
"i don't like to call it killing; i prefer to call it ‘enemy processing'" is an example of
klio [65]
Is this a question or what is this.
7 0
4 years ago
Which is not a reason why a company might decide to set up facilities in another country
olga_2 [115]

The Correct answer is B "TO INCREASE TARIFFS" Tariffs are a tax that a country puts on goods imported, that means if you moved to a different country your company would have to pay the tariffs, so to combat the price of tariffs, and why they moved in the first place, the rest of the answers would be correct. Because it must be cheaper.

7 0
4 years ago
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