Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in Cornell's wrongful dissociation and liability for any damages.
Option A
Explanation:
The creditor uses his home equity as collateral loans. A domestic equity loan is a debt form. The debt is based on the price of the land, and an appraiser from the lending institution calculates the property’s value.
Equity finance is a way to fund the business by raising money from creditors. Funding equities means raising money by providing investors some pieces of your business, known as shares. When a company owner uses equity funds, he sells part of his stake in his firm.
If there is a breach on a loan agreement, the first and most common solution used by the lenders is the harm compensation. This may include the difference in the loan volume and the price of new credit, and any reduction of profit or loss.
Cornell's unauthorized assignment of his partnership interest leads to his wrongful dissociation and liability for damages according to the partnership agreement. Specifically, this aligns with option 'a' - Cornell's wrongful dissociation and liability for any damages.
Bryn, Cornell, and Duke are general partners in Equity Lending. According to their partnership agreement, assigning an interest to a creditor without the consent of the other partners constitutes a breach. When Cornell assigned his stake to Financial Consultants Corporation without receiving consent from Bryn and Duke, it resulted in an unauthorized act.
Consequently, Cornell's wrongful dissociation from the partnership occurs, making him liable for any damages arising from this action.
An insured became disabled in February of 2014. She had bought a disability income policy in October of 2012. Her disability was due to a condition that existed prior to October 2012 but was not excluded from her policy. The insurer will:
Answer:
Pay her claims in full
Explanation:
A disability occurs when a person can't perform the tasks he or she once perform, resulting from either an injury or sickness.
Since it was not excluded from her disability insurance policy agreement she deserves to be awarded any claims made.
Remember often times after an insurance policy is bought the insured pays premiums periodically.
As long as the premiums are paid and other terms of the insurance agreement are kept, the contract stands.
What fee is charged by a lender for holding credit available for a borrower, often associated with a construction loan?
1) Take Out Commitment Fee
2) Loan Origination Fee
3) Discount Point
4) Buydown
Answer:
The correct answer is the option 2: Loan Origination Fee.
Explanation:
To begin with, a Loan Origination Fee is the name given in the U.S to an upfront fee, that is being charged by a lender who will process a new loan application and the main purpose of the fee is to compensate the time that is being used for putting the loan in place. Moreover, this type of fees are quoted as a percentage of the total loan. Furthermore, this type of loan is usually associated with a construction loan due to the fact that it will be good for the borrower only is the person plans to sell or refinance within a few years.
The priority of the product in agile is more significant than in traditional project management, as the outcome, or product, will drive the elaboration of the project.
Answer:
It is a very true statement (EPLAINED) below.
Explanation:
The pre-eminence concerning the product in agile denotes extra meaning than meanwhile traditional project management (this means a worldly exercise which involves a collection of advanced methods applied for preparation, evaluating, and managing actions), because that result, conversely outcome will encourage this illustration of a specific project. Through adopting a methodical manner for constructing a WBS, project company constituents can guarantee that they comprehend all deliverables that are demanded to be formulated.
Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model planes available. By doing this, they completed part of their:_________
Answer:
Business strategy
Explanation:
The idea to compete in a remote model air-plane industry is a part of the business strategy of like real. This is a business strategy because the decision has been made to compete in an industry to gain more customers and to improve their share in the market. It will also help like real to strengthen their performance and organisational goals.
Which of the following is not a step in the grievance process? Group of answer choices
1. Employee discusses grievance with union rep/steward or reports directly to supervisor
2. If union representative and employee agree grievance has merit, a formal written grievance is submitted
3. The union representative and a management representative may try to resolve the grievance
4. The grievance is brought before a court, which decides the case
Answer:
The answer is D, the grievance is brought before a court which decides the case.
Explanation:
A grievance procedure is a process adopted within an organisation for the purpose of resolving conflicts. Most of the time, it is meant to resolve conflict between individuals of lower cadre or hierarchy in an organisation and people in the top management position.
There are about six different procedure in the grievance process and taking a grievance to the court to decide on a case is not one of them. However, it is worthy to note that when all necessary grievance procedure have been utilized and there seem not to be a resolution in sight, a third part arbitrator in invited into the scene which mostly is between high management personnel.
In the union or labor grievance process, an issue is not typically brought before a court as a standard step. The process usually entails discussing the grievance with a union or management rep, submitting a formal written complaint if it's deemed valid, and attempting to resolve the issue through discussions between union and management representatives.
Explanation:The fourth option, 'The grievance is brought before a court, which decides the case', is not typically a step in a traditional labor grievance process.
Typically, the grievance process within a labor or union environment follows these general stages:
The employee discusses the issue with a union rep/steward or reports directly to a supervisor. This step ensures that the grievance is properly identified and understood.If the union representative and the employee agree the grievance has merit, a formal written grievance is submitted. This step formalizes the complaint or issue.The union representative and a management representative may attempt to resolve the grievance through discussion and negotiation. This is often the final step, with the hope of resolution.While it's possible that a grievance could eventually end up in court if it's not resolved, this is typically a last resort and not a standard step in the grievance process.
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Rogue Spices Inc. has a Canadian receivables contract for $200,000 due in 270 days. The firm has been approached by a factoring firm that offers to purchase the receivables at a 12% per annum discount plus a 1% charge for a nonrecourse clause. What is the annualized percentage all-in-cost of this factoring alternative?
Answer:
14.82%
Explanation:
Data provided in the question:
Receivable contracts = $200,000
Due in days, t = 270
or
= 270 ÷ 365 = 0.74 years
Discount, r = 12% = 0.12
charge for a nonrecourse clause = 1% = 0.01
Now,
Annualized percentage all-in-cost of this factoring alternative
=[tex][\frac{\text{Receivable contracts}}{(\text{Receivable contracts}\times(1 - rt)-(\text{nonrecourse clause})}-1]^{\frac{4}{3}}[/tex]
= [tex][\frac{\$200,000}{(\$200,000\times(1 - 0.12\times0.74)-(\200,000\times0.01)}-1]^{\frac{4}{3}}[/tex]
= 0.1482
or
= 0.1482 × 100%
Annualized percentage all-in-cost of this factoring alternative = 14.82%
Manuel is a manager for a manufacturing company in which managers are expected to fully document all decisions and in which it is important to provide detailed data to support any recommendations. Also, out-of-the-box thinking is dissuaded. Which characteristic of organizational culture describes this aspect of Manuel's job?
Answer: Low risk taking culture
Explanation:
Organisational culture includes the behaviour, beliefs, value and principles in which an organisation operates on. It's entails the way business are done, decisions are made etc.
Low risk taking is an organisation culture aimed at minimising risks. Recommendations and Decisions are based on facts and genuine data not on abstract and unreal thoughts with decisions fully documented.
A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessionary period. The economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock?A.11.10%B. 11.23%C. 12.06%D. 11.98%
Answer:
Expected Return = 11.10 %
so correct option is A. 11.10%
Explanation:
given data
return in normal economy = 11%
economy booms = 19%
economy moves loss = 8%
economists predict = 65%
boom = 25 %
chance of recession = 10%
to find out
What is the expected return on the stock
solution
we get here Expected Return for all that is
State of Economy Probability Return Expected Return
Normal 65% 11% 0.0715
Booms 25% 19% 0.0475
Recessionary 10% -8% -0.0080
Expected Return 0.1110
as here Expected Return= Probability × Expected Return ..............1
Expected Return = 11.10 %
so correct option is A. 11.10%
To calculate expected return, multiply the estimated returns of the stock in each economic scenario by their probabilities and sum them. Therefore, the expected return for this stock is 11.1%, considering the 65% chance of a normal economy, 25% of a boom, and 10% of a recession.
Explanation:To calculate the expected return on the stock, you need to take into account the probability forecast of each economic scenario. Each of these events will impact the return on investment in a different way, therefore we must multiply the estimated return by the probability of each situation, respectively.
Therefore, you can calculate the expected return as follows: (0.11 * 0.65) + (0.19 * 0.25) + (-0.08 * 0.10). So, when calculating the figures, we get: (0.0715) + (0.0475) + (-0.008) which equals 0.111 or 11.1%.
This calculation is reflecting the overall expected return on investment considering the given economic probabilities, providing a useful tool for investors to anticipate their stock returns. For instance, this is similar to the varying returns investors saw from buying stocks in the S&P 500 index over recent decades, where dividends and capital gains could dramatically affect the total return.
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Maria purchased 100 shares of JAX stock for $30 per share and sold this same stock one year later for $29 per share. She paid commissions of $50 when she purchased the stock and $45 when she sold the stock. Dividends of $2 per share were paid during the year. The capital loss on this stock transaction was______
a.$100.
b.$145.
c.$150.
d.$195.
Answer:
Option (d) $195
Explanation:
Data provided in the question:
Number of shares purchased = 100
Price per share = $30
Selling price per share = $29
Commission paid at the time of purchase = $50
Commission paid at the time of sale = $45
Dividend paid = $2 per share
Now,
Total cost of purchasing the shares
= Price of shares + Commission
= ( 100 × $30 ) + $50
= $3000 + $50
= $3050
Revenue from sales
= Selling price of shares - Commission
= ( 100 × $29 ) - $45
= $2900 - $45
= $2855
Therefore,
Capital loss = Total cost of purchasing the shares - Revenue from sales
= $3050 - $2855
= $195
Hence,
Option (d) $195
These are managers who are citizens of countries other than the one in which the MNC is headquartered or the one in which they are assigned to work by the MNC.
A. Multipatriates
B. Home-country nationals
C. Inpatriates
D. Third-country nationals
Answer: D. Third-country nationals
Explanation:
Third-country nationals: Someone who is working with an international organization and is not a citizen of the country where the organization has it headquarters, and also not a citizen of the country where they work. The medical profession is having increase in the number of staffs who are third-country nationals especially for Nurses.
Which of the following statements is CORRECT? a. Projects with "normal" cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive to negative. If there are more than two sign changes, then the cash flow stream is "nonnormal." b. The "multiple IRR problem" can arise if a project's cash flows are "normal." c. Projects with "normal" cash flows can have two or more real IRRs.
Answer:
a. Projects with "normal" cash flows can have only one real IRR.
Explanation:
The options in this question are incomplete. The complete question can be found here - https://quizlet.com/111317444/intro-to-finance-ch-11-flash-cards/
Here is the complete question:
Which of the following statements is CORRECT?
a. Projects with "normal" cash flows can have only one real IRR.
b. Projects with "normal" cash flows can have two or more real IRRs.
c. Projects with "normal" cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive to negative. If there are more than two sign changes, then the cash flow stream is "nonnormal."
d. The "multiple IRR problem" can arise if a project's cash flows are "normal."
e. Projects with "nonnormal" cash flows are almost never encountered in the real world.
A normal or conventional cash flow is when there's a negative cash flow followed by postive cash flows. Example : Cash flows in year 0,1,2 are $-50, $100, $70 respectively.
A non-normal or non conventional cash flow is when there's a negative cash flow, followed by a positive cash flow then a negative cash flow. Example: Cash flows in year 0,1,2 are $-50, $100, $-70 respectively.
IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
Multiple IRR is when a cash flow has more than one IRR.
Multiple IRR only occurs with non normal cash flows.
Normal cash flows cannot have more than one IRR.
I hope my answer helps you.
Failure to include project management in the WBS will increase the likelihood that the project will not be completed on time and within budget.
Answer:
The statement is True
Explanation:
The purpose of including a project management in the WBS is to allow the project manager properly view the task involved in the project more effectively and thus know what is going to plan and what is not. In this way the project manager can have ample knowledge on whether the project is in line with time and budget.
Some WesternSlope Cleaning customers have long-term contracts for full-service cleaning, while others call the company as and when they require a particular service. The long-term customers have their queries handled by the company's customer service representative. The rest of its customers are directed towards voice messages when they want their inquiries to be processed. What strategy is the company adopting to achieve marketing excellence, and what is the main risk of this strategy?
Answer:
Western Slope Cleaning is using a differentiation strategy for its high profit tier customers and their low profit tier customers.
By using this strategy, the full service cleaning customers are probably happier and receive better customers service, but the rest of the customers may be unhappy and feel they are receiving a low quality service. This will eventually lead to a decrease in the amount of low profit tier customers.
What are the four most important ways a firm becomes a monopoly? The four main reasons a firm becomes a monopoly are:
A. the government blocks entry, control of a key resource, network externalities, and economies of scale.
B. antitrust legislation, control of a key resource, no close substitutes, and economies of scale.
C. the government blocks entry, control of a key resource, network externalities, and diseconomies of scale.
D. antitrust legislation, control of a key resource, arbitrage, and economies of scale.
E. the lack of patents and copyrights, control of a key resource, network externalities, and economies of scale.
Answer: A. the government blocks entry, control of a key resource, network externalities, and economies of scale.
Explanation:
KylaKyla is buying clothesclothes. She can choose between blue jeansblue jeans, khaki pantskhaki pants, and black jeansblack jeans. She doesn't like black jeansblack jeans, and after some thought, she chooses blue jeansblue jeans. What is the opportunity cost of this choice?
A. The black jeansblack jeans.
B. The khaki pantskhaki pants.
C. The blue jeansblue jeans, the khaki pantskhaki pants, and the black jeansblack jeans.
D. The khaki pantskhaki pants and the black jeansblack jeans.
Answer:
B. The khaki pants
Explanation:
Opportunity cost is the benefits forfeited as a result of choosing one item or activity over the other. It the value of the next best alternative of choice made.
Opportunity costs arise because people have to make choices every day. Choosing an item over others implies sacrificing the benefits of the others. The value or cost of the sacrificed item represents the opportunity cost.
Khaki pants are the opportunity cost. Kyla is comfortable with either blue jeans or khaki pants. He does not like black jeans. His alternatives are khaki pants or Blue jeans. Choosing blue jeans implies forfeiting khaki pants. The khaki pants are the best alternative that was missed.
The opportunity cost of Kyla's decision to buy blue jeans is the khaki pants, which represents the next best alternative she did not choose.
Explanation:The opportunity cost represents the next best alternative that is forgone when a choice is made. In Kyla's case, she had three options - blue jeans, khaki pants, and black jeans - but decided against buying the black jeans.
Therefore, when she chose the blue jeans, her opportunity cost were the khaki pants, which is the other option she could have selected. This is because the opportunity cost is not about all other options, but the next best viable alternative. Considering that she didn't want the black jeans at all, the khaki pants represent her missed opportunity, hence becoming the opportunity cost.
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The assembly-line workers of Autowon Inc. petitioned the top management to provide basic amenities such as access to potable water and a clean working environment. In the context of Abraham Maslow's hierarchy of needs, this scenario illustrates the workers' _____.
a) physiological needs
b) security needs
c) social needs
d) esteem needs
t is easiest to identify the company that functions as the strategic center firm in: a. horizontal complementary strategic alliances. b. vertical complementary strategic alliances. c. corporate-level cooperative partnerships. d. international cooperative partnerships.
Answer:
The correct answer is B
Explanation:
Vertical complementary strategic alliances, is the kind of alliances which is made or formed among firms that agree for using their capabilities and skills in different stages of the value chain in order to create or establish value for both the firms.
So, it is easy to acknowledge the company which functions as the strategic centre firm in the vertical complimentary alliances of strategy.
The strategic center firm is easiest to identify in vertical complementary strategic alliances, where firms join together for diverse steps in the production or supply process. The strategic center firm is typically the firm at the top of the chain.
Explanation:It is easiest to identify the company that functions as the strategic center firm in b. vertical complementary strategic alliances. In this type of alliance, companies join together to perform different steps in the production or supply process. This structure creates a clear hierarchy, making it easy to identify the strategic center firm - typically the firm at the zenith of the production or supply chain, dictating terms to its allies below. Examples include John D. Rockefeller's use of vertical integration in building his empire, or a company choosing to specialize in its core competencies and allying with other firms for supply and distribution.
On the contrary, in horizontal complementary alliances, firms at the same level collaborate which might make identifying the strategic center firm intricate. Similarly, in corporate-level and international cooperative partnerships, the strategic center firm might not be readily apparent due to the complex and global nature of these partnerships.
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Socialism is __________. a) an economic system based on private property and market exchange. b) an economic system where the government owns property and controls production. c) an economic system organized without private property and based on the principle that individuals should be able to consume societal resources based on their needs, not their ability. d) an economic system where buyers, sellers, and producers engage in the exchange of commodities and services.
Answer:
The correct answer is B. An economic system where the government owns property and controls production.
Explanation:
Socialism is an economic system where everyone in society equally owns the factors of production.
Under socialism, workers are no longer exploited because they own the means of production. Profits are spread equitably among all workers according to their individual contribution. But the cooperative system also provides for those who can't work. It meets their basic needs for the good of the whole society.
The system eliminates poverty. It provides equal access to health care and education. No one is discriminated against.
The most suitable definition of socialism from the list is "an economic system where the government owns property and controls production" (B).
Socialism can best be defined as an economic where the government controls production, A socialist economy does not favor private ownership of the factors of production.
What the socialist economy tends to archive is the satisfaction of needs rather than the accumulation of gains or profit. There is the belief of social ownership.
Thus, we can conclude that socialism is a system whereby, their is no private ownership of the means of production.
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Maria's company makes televisions. The Clarity, a 4K television featuring wireless capabilities, is their best selling model, and the company plans to release a new version in a month. However, next year Maria's company plans to release a television featuring brand new technology that offers even better picture quality than the Clarity. This is an example of___________.
Answer:
Planned obsolescence.
Explanation:
Planned obsolescence is a strategy used by companies whose goal is to ensure the outdated product and the release of an updated version of the product to arouse the interest of consumers and consequently an increase in demand for the product with greater functionality.
There are several market sectors that use the planned obsolescence strategy, which can be noticed in technology companies, which require more frequent product replacements (smarthphones, computers, tablets ...) due to the wear and tear of physical components and operating system upgrades. generally requires larger features less compatible with previous hardware.
Therefore, despite a widely used strategy, it is ideal for organizations to analyze the implementation of planned obsolescence so as not to be misunderstood by consumers when improvements and upgrades are insufficient to replace the product with a newer one.
The economy is in long-run equilibrium: Select one:
a. when the AD and AS curves intersect at potential output, Y*.
b. when the AD and AS curves intersect, regardless of the level of output.
c. when the AD and AS curves become vertical.
d. only when the business cycle is eliminated.
Answer:
A, when the AD and AS curves intersect at potential output,Y.
Explanation:
Aggregate demand curve is a graphical representation that shows the relationship between total goods and services and its price levels.
Aggregate supply curve is a graphical representation that shows the relationship between the total amount of good and services firms are willing to sell and at what price the want to sell.
For an economy to be in long-run equilibrium, an economy has to have both curves meet at a point Y which is the potential output of the economy. This means simply that demand and supply has to be balanced (in equilibrium).
I hope this helps.
Jordan is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordan is basing her decision on____________.
A. habitual decision making.
B. a noncompensatory decision rule.
C. social factors.temporal factors.
D. a compensatory decision rule
Answer: A compensatory decision rule.
Explanation:
Jordan is basing her purchase decision on the weights of the laptop since she is going to use them more often n for trips, this is an example of the compensatory decision rule.
The compensatory decision rule explains that buyers makes purchase by comparing the various products available for sale and choosing the product with qualities closest to what they already have in mind before making purchase.
Karen chooses to go to university fulltime rather than to work. Karen:_______ A. is not part of the labor force. B. is part of the labor force and what economists call a discouraged worker. C. is part of the labor force, but not actively seeking work. D. is considered employed.
Answer:
The answer would be A
Explanation:
It is not part of the labor force because it is not working in any way since it is studying full time, if she worked part time if it would be within the percentage of people who work.
Karen chooses to go to university full-time rather than work. Karen is part of the labor force, but not actively seeking work. The correct option is C.
Karen does not actively seek a job because she is a full-time student. The labor force, by economists' accepted definition, is made up of people who are either employed or actively looking for work. Karen is still regarded as a member of the labor force but is not actively seeking employment because she has decided to concentrate on her schooling.
Thus, the most appropriate selection is option C.
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The Industrial Workers of the World differed from the other major trade unions in that
a. its objective was to eliminate the private ownership of the means of production.
b. it was outlawed by the U.S. government.
c. unlike the other unions, it disdained using boycotts and strikes against capital.
Answer:
a. its objective was to eliminate the private ownership of the means of production.
Explanation:
Industrial workers have never been outlawed by the US Government. Also, it has never disdained, and due to any reason whatsoever. However, going by the study of Carl Marx, the objective of the industrial workers of the world from the other major trade union is certainly that its objective was to ensure the elimination of the private ownership of the means of production. Hence, this is the correct answer.
Jim, the CEO of Maple Inc., had to sign a few papers that Amanda, his secretary, presented to him. Unknown to Jim, Amanda had carefully slipped in a contract for the sale of Jim's home to her in the papers which he signed. If Amanda seeks to enforce the contract, Jim's best defense to have the contract declared void would be:
Answer:
B. Fraud in the execution
Explanation:
Jim's best option to declare the contract void in court would be to use the legal term 'Fraud in the execution, which constitutes any illegal act that is deliberately conceived to deceive or mislead another person with a negative effect towards that person.
In Jim's case Amanda actions negatively affected him as it involved selling his home to her.
Another example of this situation is when someone with limited vision is deceived into signing a lease of his home with the thought that he is signing a bank document.
For something to be considered money, it must a. be of low intrinsic value. b. be of high intrinsic value. c. have the backing of the government. d. not be generally accepted as a medium of exchange. e. be generally accepted as a medium of exchange.
Answer:
e. Be generally accepted as a medium of exchange.
Explanation:
There are several different characteristics that money needs to have,
These include
Potability (Must be portable to carry)Divisibility (must be able to make payments for different worth of goods)Uniformity (must be consistent and uniform)Durability (must not perish if kept over time)Acceptability (must be readily accepted by economic agents)Out of the options, money must be generally accepted as a medium of exchange or there will not be any transactions.
Hope that helps.
Country A would have an absolute advantage compared to Country B in the production of corn if
A) corn can be produced at lower cost in terms of other goods than it could be in Country B.
B) Country A uses fewer resources to produce corn than Country B does.
C) the demand for corn is higher in Country A than in Country B.
D) corn sells for a higher price in Country A than in Country B.
Answer:
B) Country A uses fewer resources to produce corn than Country B does.
Explanation:
An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others. A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.
Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.
One factor that is usually higher in less developed countries (LDCs) than in developed countries is _____.
Answer:
D) infant mortality
Explanation:
Infant mortality rate (IMR) is a ratio that measures how many infants (children under one year of age) die for every 1,000 live births. The IMR serves as an indicator of how healthy a country's population is.
The countries with the highest IMR are Afghanistan, Somalia, Central African Republic. While the countries with the lowest IMR are Japan, Iceland and Singapore.
A sales associate has a house listed at $200,000. It's overpriced and he feels it has only a 70% chance of selling in the original listing term. He also has a $300,000 house that has an 80% chance of sale. A quality review of his listings shows he realistically has?
Answer:
The quality values of the sales associate's listings are:
House A: $200,000 x 70% = $140,000
House B: $300,000 x 80% = $240,000
To determine the quality value of the listings, you have to multiply the listed amounts by the chances of sale.
Which of the following is NOT one of the managerial considerations in determining how to compete successfully? A. How can a company attract, keep, and please customers?B.How can a company modify its entire product line to emphasize its internal service attributes?C. How should a company respond to changing economic and market conditions?D. How should a company be competitive against rivals?E. How should a company position itself in the marketplace?
Answer:
The correct answer is B.How can a company modify its entire product line to emphasize its internal service attributes
Explanation:
A company modification of its entire production line to emphasize its internal service attributes is not one of the managerial considerations in determining how to compete successfully.
The purpose of this internal modification is to satisfy internal stake holder such as employess of the company. This decision has nothing to with company competitors. To compete sucessfully a company should focus on its external environment.
Carl Cornfield makes a payment on his tractor. What two lines of the balance sheet will this payment change?
Answer:
Property plant and equipment in non current asset section of Carl Cornfield's balance sheet will be increased.
Cash at bank in current asset section of Carl Cornfield's balance sheet will be decreased.
Explanation:
When the entity makes payment for any vehicle, the following two sections of the balance sheet are changed:
Property plant and equipment in non current asset section is increased.
Cash at bank in current asset section is decreased.
So the following two lines of Carl Cornfield balance sheet will be changed.
Property plant and equipment in non current asset section of Carl Cornfield's balance sheet will be increased.
Cash at bank in current asset section of Carl Cornfield's balance sheet will be decreased.