Answer:
assets + 80,000
liaiblities + 80,000
equity: no effect
Explanation:
the land enter the accounting at cost, which is 100,000
cash, which is an assets will decrease by 20,000
the net effect on assets is 80,000
(100,000 from lñand - 20,000 ecrease in cash)
the amount financed through the promissory note will increase liaiblities for 80,000
equity will not be affected.
Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.
The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.
The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.
Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.
To learn more about Accounting Rate of Return (ARR) here:
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There are 4 stages in the evolution of partnering represented by 4As. First is ADVISE, in this stage you express your interest in becoming his partner and communicate the intention of your product/business. Next is ACCLIMATE, this stage is when your potential partner understands the product/business. Then, ACTIVATE. This stage is when you start planning strategies with your partner on how to sell the product. Lastly, ACCELERATE your strategies into reaching greater consumer market.
Answer:
The equation for Edmund's budget line is 6C - 24G = 48
Explanation:
A budget line shows all possible combinations of two commodities that a consumer can buy at a given income level and at given market prices of commodities. The equation of the budget line is as follows.
M = (Px).X + {Py).Y where
M = Income
Px = Price of commodity X
X = Units of commodity X purchased
Py = Price of commodity Y
Y = Units of commodity Y purchased
In this question, Edmund's income is $48. Let C represent the units of punk rock video cassettes that he buys. Each one costs $6.
In addition, rather than spending on another commodity, he earns $24 per sack for accepting garbage. Let G represent the number of garbage sacks he accepts. Putting these values in the above equation, we have:
48 = 6C - 24G
Rearranging the equation, we have the final answer, which is:
6C - 24G = 48
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