Answer:
assets = liabilities + equity
a) NA - $6,400 AP
<u>+ $6,400 NP</u>
net effect $0
b) NA + $128 interest - $128 retained
payable earnings
c) -$6,528 cash -$6,400 NP NA
-$128 interest p.
revenue - expenses = income
a) NA NA NA
b) $0 $128 -$128
c) NA NA NA
<span>These two services are substitutes. The demand for one good has an effect on the demand for another good. In this case, the lowered price of the taxi fares will lead to a lowered price for the use of the limo rentals, all else held constant.</span>
An asset earned from operations is known as revenue, or more precisely as net income (the net value of assets earned (revenue) minus assets sacrificed (expenses)). A percentage of this net income is given back to shareholders as dividends. The portion that stays in the company, presumably to be reinvested into the business, is called Retained Earnings.
Answer:
Balance Sheet
Explanation:
In accounting, Balance sheet will show a complete listing of assets, liabilities and Equity of a company within a specific time period. (For most companies, the balance sheet will be made at each end of the year)
under the Assets segment, Balance sheet will specify several accounts arranged based on their liquidity. Cash usually put at the top of the list since it's considered as the most liquid assets.
People use balance sheet to give a general measurement on Company's financial health. If for example, they noticed that the liability is significantly larger than their assets, investors might feel discourage to invest in the company.
