financial account 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.

The correct answer is:d. Assets increase $4,700 and liabilities increase $4,700. Explanation:When a…

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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Question: Given that a company has an income statement as follows: Sales Costs 145,000 86,000 Other expenses 4,900 | Depreciation expense 7,000 Interest expense 15,000 Taxes 12,840 Dividends 8,700 New equity Redeemed debt 6,450 6,500 a. What is the operating cash flow? b. What is the cash flow to creditors?
What was net capital spending on these general accounting question? Please answer do fast
What was net capital spending??? General accounting
Examine the effect of the actions below on the current ratio. Assume that the prevailing current ratio is higher than 1.0. (i) Use cash to pay off current liability of $10,000 (ii) Purchase raw materials amounting to $10,000 on credit (iii) Sale of inventory (iv) Paying a dividend
A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will a. increase and remain the same, respectively b. remain the same and decrease, respectively c. both decrease d. both increase
Please answer the following requirements on these general accounting question?
What is the net income of this general accounting question?
Answer the question in the picture.
Net income example Formula: Net Income = Revenue – Expenses Total assets are $2,500,000, and you calculate total liabilities by adding current liabilities of $800,000 and long-term liabilities of $200,000 for a total of $1,000,000.
You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.
Alpha Company has assets of $638,000, liabilities of $269,000, and equity of $369,000. It buys offlce equipment on credit for $94,00o. What would be the effects of this transaction on the accounting equation? Multiple Choice Assets increase by $94,000 and expenses increase by $94,000. Assets increase by $94,000 and expenses decrease by $94,000. Liabilities increase by $94,000-and expenses decrease by $94,000. Assets decrease by $94,000 and expenses decrease by $94,000. Assets increase by $94,000 and liabilities increase by $94,000. < Prev 2 of 10 Next

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