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Kazeer [188]
2 years ago
13

How does the payment of rent for equipment affect the accounting equation? assets increase; assets decrease assets decrease; sto

ckholders' equity decreases assets decrease; liabilities increase assets increase; stockholders' equity increase?
Business
2 answers:
djverab [1.8K]2 years ago
6 0
The answer to this question is <span>assets decrease; stockholders' equity decreases 

The journal for this transaction would be

Debit:  Rent expense       xxxxx
Credit:         Cash                                xxxx
 
 Since cash is considered an asset, it will decrease asset if it placed on credit.
 Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit     </span>
rjkz [21]2 years ago
5 0

By assets decrease; stock holders' equity decreases the payment of rent for equipment affect the accounting equation.

Further Explanation:

assets decrease:

A business diminishes a benefit account as it uses up or devours the advantage in its activities. Resources a business uses up incorporate money, supplies, debt claims and prepaid costs. For instance, if your private venture pays $100 for a service charge, you would credit money by $100 to diminish the record.  

stock holders:

Investors are individuals who hold stocks — as it were, possess shares — in a company. When you purchase stocks, it resembles purchasing some portion of the organization. The more offers you purchase, the more put you are in an organization.  

equity decreases:

A diminishing in the proprietor's value can happen when an organization loses cash during the typical course of business and proprietors need to move value into ordinary business tasks. It additionally diminishes when a proprietor pulls back cash for individual use.  

accounting equation:

The accounting equation, likewise called the accounting report condition, speaks to the connection between the advantages, liabilities, and proprietor's value of an individual or business. It is the establishment for the twofold passage accounting framework. For every exchange, the all out charges equivalent the complete credits.

Subject: business

Level: High School

Keywords: assets decrease,  stock holders, equity decreases, accounting equation.  

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Knowledge Check 01 Which of the following statements about valuation allowances are true? (Select all that apply.) Check All Tha
Alina [70]

Answer:

• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.

• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.

Explanation:

A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.

Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:

• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.

• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.

7 0
2 years ago
The efforts of employees who work directly to convert direct materials into the finished product are referred to as ______
Alex_Xolod [135]

Answer:

Direct labor

Explanation:

The role of direct labor is to convert direct material into the finished products. Without the help of direct labor, it is impossible to convert the direct material into the finished goods.

Here, the direct material means the labor which works on manufacturing a product which is directly related to the production level. The allocation of direct labor is done based on the number of hours worked or product.

Hence, The efforts of employees who work directly to convert direct materials into the finished product are referred to as direct labor

7 0
2 years ago
50 POINTS!!! for the best answer
timurjin [86]

Answer:

<u><em>1. an advertising technique that uses a new kind of technology to communicate its message </em></u>

Mobile video advertising

Mobile video consumption is growing rapidly and providing advertisers with a way to reach consumers when they are paying attention. Between Q3 2012 and Q3 2014, smartphone and tablet video consumption grew 400 percent and now accounts for 30 percent of all online videos played, according to Ooyala’s Global Video Index. This trend has been helped along by the expansion of fast 4G/LTE coverage. The bigger iPhone 6 screen and the popularity of other ‘phablets’ (large-screen smartphones) also reflect the growing importance of mobile video. As phablets saturate the market, they will in turn feed the growth of mobile video.

2. an advertising technique that is most effective at the point of sale (i.e. at the moment the customer purchases the product)

The display of candy bars within immediate reach reminds you that you’re a little hungry, so you grab one (it’s on sale). Oh, and that magazine looks interesting. You’re already reading an article when you get to the cash register, where the teller asks if you want to donate $1 to a charity; and doing so, you write your name on a little heart placard that gets placed on the wall with a hundred other hearts from other donators. Finally, you complete your purchase(s) and get your receipt—with several extra items you hadn't expected to buy.

Point of sale marketing refers to all efforts that increase sales at the point the purchase is actually made. Primarily this revolves around a cash register (although a point of purchase for a business might be a meeting table, or an Internet page), and is a staple of retail and restaurant environments

3. a real-world case study of a company that was legally penalized for making false advertising claims

On March 29, 2016, the Federal Trade Commission (FTC) filed a lawsuit against Volkswagen, which claimed that the car company had deceived customers with the advertising campaign it used to promote its supposedly "Clean Diesel" vehicles, according to a press release.

In 2015, it was exposed that VW had been cheating emissions tests on its diesel cars in the US for the past seven years.

The FTC alleged that "Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly."

3 0
1 year ago
Micro Miller Company’s budgeted sales for April were estimated at $700,000, sales commissions at 4% of sales, and the sales mana
kaheart [24]

Answer:

$119,500

Explanation:

Solution:

Recall that

The budgeted sales for Micro Miller company = $700,000,

Sales commissions of = 4%

The salary of sales manager = $80,000.

Now,

Since Budgeted Sales is $700,000

Then

sales commissions is calculated as follows:

Sales Commission=0.04*700000(A)= 28000

Thus,

Sales Manager's Salary(B) = $80,000

Hence,

The shipping expenses = 0.01*700000 = $7000

Miscellaneous selling expenses becomes

Fixed = 1000

Variable =3500 700000 * 0. 5 = 119500

7 0
2 years ago
Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o
svp [43]

Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

                                            = $4,000 + 24,000 + 16,000 + 12,800 - 48,000

                                             = $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

                         = $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

5 0
1 year ago
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