If a company purchases equipment costing $4,700 on credit, the effecton the accounting equation would be:a. Assets increase $4,700 and liabilities decrease $4,700.b. Equity decrease $4,700 and liabilities increase $4,700.c. One asset increase $4,700 and another asset decrease $4,700.d. Assets increase $4,700 and liabilities increase $4,700.e. Equity increase $4,700 and is liabilities decrease $4,700.

Equipment is purchased on creditEquipment is classified as an asset because it represents something…

Answered: If a company purchases equipment…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.4.2MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...

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Similar questions

If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $6,100 and liabilities increase $6,100. Equity decreases $6,100 and liabilities increase $6,100. One asset increases $6,100 and another asset decreases $6,100. Assets increase $6,100 and liabilities decrease $6,100. Equity increases $6,100 and liabilities decrease $6,100.
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice One asset increases $4,500 and another asset decreases $4,500. Assets increase $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Equity decreases $4,500 and liabilities increase $4,500. Assets increase $4,500 and liabilities decrease $4,500.
Answer the following requirements
When a company buys equipment for $156,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? Multiple Choice Total assets increase $104,000. Total liabilities increase $156,000. Total liabilities decrease $52,000. Total assets increase $156,000.
Find the following using the data bellow a. Accounts receivable B. Current assets C. Total assets D. Return on assets E. Common equity F. Quick ratio
Answer? ? Financial accounting
Select the correct answer
Financial Accounting
The balance sheet of Koehn, Incorporated, has the following balances: Cash Accounts receivable Inventory Beginning balance $ 30,300 48,200 126,500 611,900 Ending balance 43,200 415,000 $ 32,800 51,600 129,200 574,300 53,600 304,200 Net fixed assets Accounts payable Long-term debt What is the amount of the change in net working capital?
Refer to the 10-K for Abercrombie & Fitch. Required: 1. What does the company report for the following accounts for the most current fiscal year: Enter your answer in thousands. a. Cash b. Short-term investments (or marketable securities) c. Accounts receivable d. Inventory e. Other current assets f. Accounts payable g. Other current liabilities h. Cash flow from operations A A AA A A 好 2. The company projects the following to occur in the next fiscal year: • Accounts payable will decrease by 25%. • Other current liabilities are expected to increase by 33%. • Cash flow from operations is expected to decrease by 32%. Assume all other items remain unchanged from the prior year. Provide the next year's forecasted balances for the following accounts and cash flow from operations.
Consider the following information:Net income $20,000Depreciation 3,000Increase (decrease) in accounts receivable 1,000Increase (decrease) in prepaid rent (400)Increase (decrease) in accrued liabilities 900Cash paid to purchase office equipment 4,000The company would report a net cash inflow from operating activities of:A. $17,500B. $18,500C. $21,500D. $23,300
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