Explain how the following transactions affect the accounting equation: assets purchased on credit rent paid in cash office furniture purchased for cash inventory bought on credit

Answers

Answer 1

Answer:

1. An increase in asset and an increase in liability

2. The decrease in asset cash.

3. An increase in assets and a decrease in cash.

4. An increase in inventory and an increase in liability.

Explanation:

The asset purchased on credit will increase the fixed asset account and it will also increase the account payable account. Thus, asset and liability have the same effect.

Rent paid in cash will decrease the company’s asset cash.  While the office furniture purchased in cash will increase the assets in the account and cash will be reduced by the same amount. Further, the inventory purchased on credit will increase the inventory and it will also increase the liability by the same amount.

Answer 2

Answer:

edmentum/plato

Explanation:

Assets purchased on credit

In this case, the business purchases assets on credit; that is, the business is not paying cash right now. The business is thus incurring a liability here because it will have to pay the cash in the future. Thus, this transaction increases the assets (because the business purchases them), as well as the liability (obligation to pay in future), thereby balancing the accounting equation.

Rent paid in cash

Rent is an expense that a business has to incur. Thus, in this case, the business is spending cash; that is, it is losing “cash,” which is an asset. Also, because it is losing money, the value of the business (owners’ equity) also reduces. So this transaction decreases assets as well as owners’ equity, resulting in a balanced accounting equation again.

Office furniture purchased for cash

Office furniture is an asset that a business acquires. However, the business spends money—that is, cash (also an asset)—to purchase the furniture. Thus, there is an increase in one asset (furniture), and a decrease in the other (cash). This simultaneous increase and decrease in the assets results in a balanced accounting equation.

Inventory bought on credit

Inventory refers to stock of goods such as raw materials. Therefore, inventory is an asset that the business purchases. However, because the business buys it on credit, the business needs to make the payment in the future. The business is thus adding to its assets, and also incurring a liability (obligation to pay in the future). An increase in assets as well as liabilities leads to a balanced accounting equation again.


Related Questions

Assume that chips cost $1 and soda costs $2. If the consumer has $14, the combination of goods that would maximize his utility per dollar and remain within his budget would be

Answers

Answer:

The remaining amount that the consumer would have would be $11

Explanation:

If the person originally had $14 but spent $3 all together on their items they would remain with the amount of $11.

(I hope this helps, I'm not sure if it's exactly what you were looking for but it's something so...)

Your company needs to ship 10 heart pacemakers that cost $10,000 each from Indianapolis, Indiana, to Miami, Florida. Which transportation mode should you use?

Answers

Answer:

"Air" is the correct solution.

Explanation:

A mode of carriage whereby the flight attendants, mail as well as cargo were often transported by air. This technique's biggest advantages seem to be the substantial duration of information saved owing to the increased flying speed.It is indeed a network whereby local airports provide air transport to something like a centralized airport whereby long-haul flights become accessible.

So that the above seems to be the right approach.

"The most commonly used measure to evaluate the ability of a revenue bond issuer to pay interest and repay principal is the ratio of:"

Answers

Answer:

B. Net Revenues / Debt Service

Explanation:

For measuring and analyzing the revenue bonds the ratio of Net revenues to the debt ratio is used

The net revenues come from

= Gross revenues - operations & maintenance cost

so for the paying the interest and to pay back the principal amount, the ratio of net revenue and the debt service is used

hence, the correct option is B.

The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is known as

Answers

Answer:

integrated marketing communications.

Explanation:

This is rightly so because it involves deliberate integration of promotion mix elements which includes;

advertisingsales promotionspublic relationsdirect marketingpersonal selling

By so doing a company determines as regards its products and services, what you say, how to say it, who to say it, what channels to use to reach them, and how often to communicate.

A non-MFP (non-Municipal Finance Professional) contributes $500 to an elected official's campaign in which he is entitled to vote. What would be the result of this action?

Answers

Answer:

Explanation:

This action will not result in a 2 year ban on the municipal broker dealer conducting municipal securities business with that issuer because the Municipal Securities Rulemaking Board

( MSRB )rule only applies to the Municipal Finance Professional

( MFPs )

Identify each CTSO from its description
An organization for students in college-level agriculture programs:
An organization for middle-school, high-school, and college students studying agriculture:
An organization for adult agriculture students:

Answers

Answer:

the answer are 2, 1, 3

Explanation:

Answer: EDGE 2021

Explanation:

An organization for students in college-level agriculture programs: PAS

An organization for middle-school, high-school, and college students studying agriculture: National FFA

An organization for adult agriculture students: NYFEA

An advantage of an intranet-based approach to corporate computing is

Answers

Answer:

D. all of the above

Explanation:

The corporate computing refers to the activity in which the computer is used so that the management, procedures, communication could be maintained in the corporate world

It is the creation of the hardware and the software.

For the intranet based , the following are the advantages

1. Prototyping and the new service deployment

2. Computer architecture

3. Types of media range

Therefore all the above are included

Because each supply chain process should add value to the products or services a company produces, a supply chain is frequently called a __________ chain.

Answers

Answer:

value

Explanation:

because the process is adding values to product

On August 1, ABC Company sold its investment in Teal Company for $12,400. On the previous balance sheet, the investment had a fair value of $11,400. The journal entry to record the sale will include a

Answers

Answer:

The journal entry to record the sale will include a,

Cash $12,400 (debit)

Profit and Loss $1,000 (credit)

Investment in Teal Company $11,400 (credit)

Explanation:

The Investment is carried in the the Financial statement at its Fair Value of $11,400, and this needs to be eliminated following the sale.

Recognize the cash proceeds following the sale of investment of $12,400.

Lastly any amount paid in excess of the Fair Value of the Investment must be recognized as profit or as loss (if fair value exceeds the cash proceeds)

Which of the following statements is false? a. When the required rate of return on a bond equals its coupon rate, the bond will sell at its par value.

Answers

Answer:

The answer is D. The price of a bond at its maturity is equal to the final coupon payment

Explanation:

All the options are correct except option D which states that The price of a bond at its maturity is equal to the final coupon payment.

The price of a bond is never equal to the final coupon payment. Coupon payment is the periodic payment paid by the issuer. It can be annual or semiannual or quarter etc. While bond price is the present value of the future cash flows of the bond. Bond price is determined at the initiation of the transaction.

It is the face value of the bond plus coupon payment that is paid at the maturity of the bond.

What strategy is often followed when access to the market is limited by high tariffs or non-tariff barriers, when shipping costs are prohibitive, or when the exporter is not interested in pursuing the market?

Answers

Answer: licensing

Explanation:

Licensing is a form of business arrangement whereby an organization gives room for another organization to produce its product or render its services for a particular amount.

The strategy is often followed when access to the market is limited by high tariffs or non-tariff barriers, when shipping costs are prohibitive, or when the exporter is not interested in pursuing the market.

In a purchases-payables computer system, a purchase order is created after which document has been processed?

Answers

In a purchases-payables computer system, a purchase order is created after which document has been processed?

Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he needs to turn his attention to the getting the products to the customers.As he chooses retail partners,which of the following is least important in this process?
A) looking at the channel structure
B) determining where target customers will expect to find this product
C) considering characteristics of channel members
D) encouraging new bicycling enthusiasts
E) considering distribution intensity

Answers

Answer: Encouraging new bicycling enthusisasts

Explanation:

From the question, we are informed that Aaron has designed innovative accessories for hard-core bicycling enthusiasts and the he knows where and how he will make them,and he needs to turn his attention to the getting the products to the customers.

As he chooses retail partners, the least important in this process is encouraging new bicycling enthusiasts

Exchanging business cards in Asia must be done with respect, according to the customs and norms of the country or region. This protocol is considered important during which stage of the personal selling process?

Answers

Answer:

Approach

Explanation:

The personal selling process is a term used in marketing that describes a seven-step operation, which includes the following stages: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up. All the stages deal with issues of sales and marketing solutions.

However, the Approach stage is defined as the preliminary meeting between the salesperson and the prospective customer, whereby the salesperson gets to know the potential customer in a very short period of time. This includes how to greet in accordance with the customs and norms of the potential customer.

Hence, in this case, the correct answer is APPROACH

"A bond trader believes that he has too much inventory in 25-year ABC corporation bonds. The dealer would most likely:"

Answers

Answer: b. hedge the bond positions

Explanation;

If the bond trader believes that he has too much inventory in 25-year ABC corporation bonds, it means he is worried that this holding can lead to potential loss.

The dealer would therefore like to act against this by hedging the bond positions which means to use derivative instruments such as interest rate swaps to ensure that the risk resulting from holding that many bonds is minimized.

Name two steps Mexico’s government did to reform their economy.

Answers

Answer:

privitazation of government operated firms, and they opened the economy to trade and foreign investment

Explanation:

Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships by teaching their customers, assessing their needs, and organizing the companyâs efforts to solve customer problems.

a. True
b. False

Answers

Answer:

b. False

Explanation:

The above is false because sales people are supposed to build and maintain long term relationships with their customers by listening to and assessing their needs and not teaching their customers. Sales people create a concerted effort towards solving those needs experienced by their customers.

A salesperson represent the image of the company he or she is selling for, hence must be professional and well trained because the company gets profit through his interactions with the customers. This means that before the company gets profit, customers must be satisfied because these salespeople act as critical link between the company and its customers.

The petty cash fund of the Brooks Agency is established at $230. At the end of the current period, the fund contained $155 and had the following receipts:

Entertainment: $41
Postage: $17
Printing : $17

Prepare journal entries to record:
a. Establishment of the fund
b. Reimbursement of the fund ocs at the end of the current period.

Answers

Answer and Explanation:

The journal entries are given below:

1. Petty cash A/c Dr $230  

      To Cash A/c              $230

(Being petty cash fund established)

For recording this we debited the petty cash account as it increased the assets and credited the cash as it decreased the asset

2  Entertainment expense A/c Dr $41  

  Postage expense A/c Dr $17

  Printing expense A/c Dr $17

                                       To Cash A/c Dr $75  ($230 - $155)

(Being reimbursement of the fund is recorded)

For recording this we debited all expenses as it increased the expenses and credited the cash as it decreased the asset

org303 According to the textbook, the most important reason for organizations to rely on research is that it ultimately

Answers

Answer:

Explanation:

The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.

If an employee sits down with a supervisor and sets a goal to reduce waste on the assembly line by 3%, the reward the supervisor provides if the goal is reached is called a ______.

Answers

Answer:

Bonus.

Explanation:

Just as the name sounds, so is it an additional pay that is been given to an employee seen to appear above their regular earnings, this bonus is seen to be used by many organizations in different forms are categorically given to employees or a team that achieves significant goals. This little pay go a very long way in the life, performance and output of a team or employee. Also, employee morale, output and also motivation. Due to the positive returns from this act, a lot of organisations tends to practice this ritual consistently because every goal or target reached by an employee or or team brings the organisation closer to success.

As defined by Virginia law, ______ is any person, or business entity of not more than two persons unless related by blood or marriage, who for compensation or valuable consideration is employed either directly or indirectly by, or affiliated as an independent contractor with, a real estate broker, to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale or exchange of real estate, or to lease, rent or offer for rent any real estate, or to negotiate leases, or of the improvements relating to the real estate.

Answers

The correct answer would be real estate salesperson

Discuss the primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP.

Answers

Answer:

The primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP:

Country A pursues expansionary fiscal policy in order to grow the economy and create full employment.  For example, If Country B decides to cut tax rates or increase government spending, shifting the aggregate demand curve to the right , then it wants the economy to expand.

On the other hand, US Congress can also decide to raise tax rates or cut government spending, thus shifting aggregate demand to the left.

Explanation:

Country A's expansionary fiscal policy reduces the unemployment rates, increases inflation rates, interest rates, private investment, and GDP.

The US contractionary fiscal policies ensure that the unemployment rate is increased, while inflation and interest rates are reduced.  There is also reduced private investment and GDP as a result of the contractionary fiscal policies.

Suppose you put half of your money in Monster Beverage and half in IBM. What would the beta of this combination be if Monster Beverage has a beta of 1.52 and Pepsi has a beta of .55

Answers

Answer:

1.04

Explanation:

Monster beverage has a beta of 1.52

Pepsi has a beta of 0.55

Suppose half of your money is invested into Monster beverage and IBM

Then the beta of the combination can be calculated as follows

= (1/2 × 1.52) + (1/2 × 0.55)

= (0.5 × 1.52) + (0.5 × 0.55)

= 0.76+0.275

= 1.04

Hence the beta of the combination is 1.04

In calculating GDP, governmental transfer payments, such as social security or unemployment compensation, are:________. A) not counted. B) counted as investment spending. C) counted as government spending. D) counted as consumption spending.

Answers

Answer:

A) Not Counted

Explanation:

f the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, calculate the arc price elasticity.

Answers

Answer:

arc price elasticity = -1.64

Explanation:

arc price elasticity = (change in quantity x average price) / (change in price x average quantity)

change in quantity = 7,400 - 10,000 = -2,600 unitsaverage price = ($2.50 + $3) / 2 = $2.75change in price = $3 - $2.50 = $0.50average quantity = (10,000 + 7,400) / 2 = 8,700 units

arc price elasticity = (-2,600 x $2.75) / ($0.50 x 8,700) = -7,150 / 4,350 = -1.64

Ross was appointed CEO of an auto parts manufacturer about six months ago. Almost immediately, he recognized a competitive advantage the company could develop, but many lower-level managers from numerous departments have pushed back on his recommendations. What challenge is Ross facing

Answers

Answer:

Organizational inertia

Explanation:

This phenomenon occurs when an organization which has the ability or capacity to progress, improve and outperform is not doing so, but instead remains in in current status.

In other words, it is an organization that is resistant to change. In this example, we noticed that Ross the newly appointed CEO recognized a competitive advantage the company could develop, but many lower-level managers from numerous departments pushed back or resisted his recommendation for a change.

Money is: Multiple Choice the sum of assets minus debts. any asset used to make purchases. the same as income. all financial assets.

Answers

Answer:

any asset used to make purchases.

Explanation:

Money is any asset used to make purchases. This ultimately implies that, in economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange.

Hence, money is a generally accepted medium of exchange around the world.

"Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics."

Answers

Answer:

Microeconomics

How much will Ultravision charge for "Call of Obligation?"

Is Ultravision able to sell all of the "Call of Obligation" games it produces or do they need to produce more?

How does Ultravision choose to market "Call of Obligation?"

How much will Ultravision pay the developers of the game?

Macroeconomics

Has the country's unemployment rate changed as Ultravision  hired a huge team of workers to develop the game?

Have the millions of dollars that people have spent on video games worldwide affected the Gross Domestic Product (GDP) in their respective countries?

How much less economic output occurs countywide because workers call in sick to stay home and play either "Call of Obligation" or another video game?

Explanation:

Microeconomics refers to the study of the events resulting from responses of individuals to changes in motivation, prices, measures to produce and methods of production.

Macroeconomics

Macroeconomics is the subdivision of economics that is concerned with the functioning and organizational structure, characteristics, behavior and the selection processes and making decision with regards to the entire economy.

A material overstatement in ending inventory was discovered after the year-end financial statements of a company were issued to the public. What effect did this error have on the year-end financial statements

Answers

Answer:

Current assets to be overstated and gross profit to be overstated.

Explanation:

Inventory is the product that is sold by a business to generate profits. They are purchased and sold out to customers within a given period.

If inventory is overstated it means that cost of goods sold is understated. This will inflate the profit of the business in financial statements.

Cost of goods sold = Starting inventory + Purchases - Ending Inventory

If ending inventory is overstated it will reduce cost of goods sold.

Also as inventory is a current asset of the business that can be sold within a short time, an overstatement of inventory is an overstatement of current assets.

Your boss told you that she is giving you a 5% raise starting with your next paycheck. You are very pleased to hear this good news until you learn that some of your coworkers earned a 10% raise. Now you are unhappy and angry about your raise. Your experience is best explained in terms of

Answers

Answer: The relative deprivation principle

Explanation:

The relative deprivation principle is based on a concept that an individual feels cheated of some event or happening when they hear that same people who participated in such event gained better than them. This is a normal occurrence in many offices as regards promotions; when an individual gets to discover that their was a general raise in pay but his was the smallest ratio amongst the other person's, he would feel deprived. Also such scenario do happen in promo being carried out in business between end users who don't get the same promo price despite they feel they were supposed to get same.

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