ABC Manufacturers conducts commercial transactions across national boundaries. ABC Manufacturers would be classified as an international business.
The trade of commodities, services, technology, capital, and/or information across national borders and on a global or transnational scale is referred to as an international business. Cross-border exchanges of products and services between two or more nations are involved. The practice of law in the international business world is known as international business law. It focuses on a variety of subjects, such as licensing, tariffs, taxes, international business operations, and law and economics. There are regional differences in international business law.
The International Businesses Standards Organization (IBSO) is a globally autonomous non-profit organization that develops, advances, and upholds ethical standards for participants in the global economy as a whole.
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A ______ is a general term encompassing mutual savings banks, savings and loan associations, and credit unions.
Mutual savings banks are a trendy time period encompassing mutual savings banks, savings and loan institutions, and credit score unions.
The term financial institution refers to FDIC-insured banks, mutual savings banks, savings banks, and savings associations; federally insured credit unions; non-federally insured banks, credit score unions, and thrift institutions; businesses and branches of overseas banks; and Federal home mortgage bank (FHLB) participants.
They're often together held (regularly known as mutual savings banks), which means that the depositors and borrowers are individuals with voting rights, and have the potential to direct the financial and managerial dreams of the agency like the participants of a credit score union or the policyholders of a mutual coverage enterprise.
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Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa. Danvers knows that he will get all of the following benefits EXCEPT:
a)national advertising
b) a proven track record
c) assistance in personal income tax preparation
d) standard goods and services
a set operating procedures
Clarence Danvers will receive all of the following benefits EXCEPT assistance in personal income tax preparation.
What is personal income tax preparation ?Personal income tax preparation is the process of preparing and filing an individual's personal income tax return. This involves collecting and organizing information about the individual's income, deductions, and credits, and using this information to calculate the amount of tax owed or the amount of refund that the individual is entitled to receive.Personal income tax preparation may be done by the individual themselves or by a tax professional, such as an accountant or tax preparer. There are many resources available to help individuals prepare their own tax returns, including tax software and online tools, as well as tax guides and instructions provided by the Internal Revenue Service (IRS) and other tax agencies.To learn more about income tax refer :
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Bob connects to his bank's SSL-protected website. The browser reports that the site's domain name does not match the domain name in the SSL certificate. Which of the following may be true? Select all that apply.
The bank might use two or more domain names on its site, and Bob used a URL that doesn't match the name in the certificate.
A hacker may have set up a site whose domain name masquerades as the bank; the certificate contains the name of a different site the hacker owns.
In the above case
The bank might use two or more domain names on its site, and Bob used a URL that doesn't match the name in the certificate.A hacker may have set up a site whose domain name masquerades as the bank; the certificate contains the name of a different site the hacker owns.Hence, both of these apply.
One of SSL's primary functions is to encrypt data, which shields you from hackers and data skimmers. Data that has been encrypted can only be decrypted by an authorized person, such as a server or browser. Credit card transactions, IDs, passwords, etc. mostly use this.
An SSL certificate is required for a website in order to protect user information, confirm the site's ownership, stop hackers from building a fake version of the site, and win over users. SSL/TLS encryption is made possible by the pairing of public and private keys that SSL certificates make possible.
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What is a taxpayer’s maximum expected contribution toward health insurance coverage whose premium does not exceed the premium for a benchmark plan purchased through an ACA marketplace in 2022?
Answer:
The maximum expected contribution toward health insurance coverage that a taxpayer may be required to pay in 2022 depends on several factors, including their income level and the size of their household. The premium for a benchmark plan purchased through an ACA marketplace, also known as the Affordable Care Act (ACA) marketplace, is used to determine the amount of the premium tax credit that a taxpayer may be eligible to receive. The premium tax credit is a financial assistance program that helps eligible individuals and families afford health insurance coverage.
The premium tax credit is based on the difference between the premium for the benchmark plan and the taxpayer's expected contribution toward the premium. The taxpayer's expected contribution is based on their income level and the size of their household, as determined by the Federal Poverty Level (FPL). If a taxpayer's income is below 400% of the FPL, they may be eligible for a premium tax credit.
Explanation:
For example, if a taxpayer's income is below 100% of the FPL and they are part of a household of one, their expected contribution toward the premium for a benchmark plan purchased through an ACA marketplace in 2022 may be no more than 2% of their income. If their income is between 100% and 200% of the FPL, their expected contribution may be no more than 4% of their income. If their income is between 200% and 300% of the FPL, their expected contribution may be no more than 6.4% of their income. If their income is between 300% and 400% of the FPL, their expected contribution may be no more than 8.5% of their income.
It's important to note that these are just estimates, and the actual amount that a taxpayer is required to contribute toward their health insurance coverage may vary. It's always a good idea to check with the ACA marketplace or a qualified tax professional for more specific information about your situation.
A taxpayer's estimated maximum payment for health insurance coverage in 2022 will depend on a number of variables, including their income level and the size of their household.
What is health insurance?A corporation and a customer enter into a contract for health insurance. In exchange for the payment of a monthly premium, the corporation offers to cover all or part of the insured person's medical expenses.
The contract, which is typically for a year, outlines the precise costs linked to disease, injury, pregnancy, or preventative treatment that the insurance will be liable for covering.
Certain services provided without prior authorization may not be covered by insurance companies. If a generic version or a similar drug is available for less money, they may decline to pay for name-brand pharmaceuticals.
These guidelines should all be included in the documentation that the insurance provider provides. Before making a significant investment, it is wise to check with the company directly.
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when a deposited check is drawn against another bank the collection of that check will ___ the reserves and the checkable deposits of the bank from which it draws
reduces
The collection of a deposited check reduces the reserve and checkable deposits of the bank from which it is drawn when it is drawn against another bank.
What is meant by deposit?Money stored at a financial institution is called a deposit within side the global of finance. A deposit is a deal wherein cash is given to a person else to hold safe. A part of cash used as safety or collateral for the transport of an awesome also can be called a deposit.
A deposit encompasses exclusive meanings. One sort of deposit entails a switch of price range to some other celebration for safekeeping. Using this definition, deposit refers back to the cash an investor transfers right into a financial savings or bank account held at a financial institution or credit score union.
Often, someone needs to deposit a sure amount of cash a good way to open a brand new financial institution account, recognized at the least deposit. Interest is decided with the aid of using what form of account the cash is deposited into—now no longer all checking bills earn interest, at the same time as maximum financial savings bills and certificate of deposit do.
Most banks will take deposits within side the shape of cash, checks, cash orders, or cashier's checks. If you are the use of a take a look at to open an account, there can be a keeping duration at the same time as the brand new financial institution waits for the take a look at to clear.
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A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates: O Law of demand O Law of supply Change in Supply O Change in Demand.
Answer: Change in demand
Explanation:
The part of the package that contains the presentation of information on a product is called a
O a. trademark.
O b. warranty statement.
O c. brand.
O d. label.
Oe. Universal Product Code.
Answer:
Label
Explanation:
Label is a component of a packaging that house presentation of information about a product
Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is
a. bowed outward indicating increasing opportunity costs.
b. bowed outward indicating decreasing opportunity costs.
c. a straight line indicating constant opportunity costs.
d. bowed inward indicating increasing opportunity costs.
Bowed outward indicating increasing opportunity cost. (A) is the right answer.
Corn Marginal Wheat Marginal Opportunity cost
2000 0 0 0 0.00
1600 400 700 700 1.75
1200 400 1300 600 1.50
800 400 1800 500 1.25
400 400 2200 400 1.00
0 400 2500 300 0.75
Opportunity cost = Marginal production of wheat / Marginal production of Corn
The value of the next-highest-valued alternative use of a resource is what economists mean when they talk about its "opportunity cost." You cannot, for instance, read a book at home during the time you would have spent seeing a movie and spend the money you would have spent on something else.
PPC will always bowed outside with Increasing opportunity cost and bowed inside for decreasing opportunity cost.
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Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are: A. brokers B. agents C. horizontal marketing systems D. merchant wholesalers E. vertical marketing systems
Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are Merchant wholesalers.
A merchant wholesaler is a type of business that is involved in the selling of goods to other businesses, rather than to individual consumers. These businesses typically buy goods in large quantities from manufacturers or other types of suppliers and then resell them to smaller businesses or retail outlets.
A Merchant wholesalers is an independent wholesaler who can be either generalists, who sell a wide range of different products, or specialists, who focus on a particular type of product or market.
Hence, the correct option is "D".
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christian pilgrimages influenced the development of church architecture for all of the following reasons except:
Except for the fact that pilgrims had to pay a fee to enter the churches, pilgrimage boosted the economic growth for each of the reasons listed below. endless doom.
Which pilgrimage is the world's oldest?Mount Kailash near Tibet is regarded to be the world's oldest place of pilgrimage. A 52-kilometer trip around the mountain has been thought to bring good fortune for more than 15,000 years. This pilgrimage is often completed on foot in about a month.
What does "pilgrimage" mean exactly?In quest of new or enlarged meaning about oneself, others, environment, or a higher good through the experience, a person embarks on a pilgrimage, frequently into an uncharted or foreign location. It may result in a private The pilgrim then resumes their regular life after their makeover.
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Which sentence in the paragraph conveys the main idea of the letter?
I would like to apologize for the lost package. I understand your frustration. You are absolutely right to complain about it. We value and hope to keep your business. I assure you that this is an unusual incident. Please allow me to issue you a $500 prepaid gift card to compensate for the lost order.
A.
I would like to apologize for the lost package.
B.
Please allow me to issue you a $500 prepaid gift card to compensate for the lost order.
C.
I assure you that this is an unusual incident.
D.
You are absolutely right to complain about it.
The sentence in the paragraph that conveys the main idea of the letter is A. I would like to apologize for the lost package.
What is the main idea ?The main idea of a paragraph can be described as the primary point or concept that the author wants to communicate to the readers about the topic.
From the text we can see that the writer syays that I would like to apologize for the lost package and I understand your frustration. You are absolutely right to complain about it which implies that he was apologizing.
Therefore, option A is correct.
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The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage.a. Trueb. False
The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage. This statement is true.
What Is Arbitrage?The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.
Arbitrage is the practice of purchasing an underpriced security and selling an equivalently-priced asset until the prices converge. Trading on illegal insider knowledge may result in abnormal profits even if the efficient market theory is accurate in a semi-strong sense.
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The business impact analysis (BIA) identifies the resources for which a business continuity plan (BCP) is necessary. a. Trueb. False
Answer:
a
Explanation:
this is for safety reasons
central to agency theory is the relationship between two primary players, the principals (stockholders) and agents (management). True or False ?
is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost.
Logistics is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost.
Give a brief account on logistics.The term "logistics" describes the total process of controlling the way resources are obtained, stored, and delivered to their intended location. Determining the efficiency and accessibility of potential distributors and suppliers is a part of logistics management. Logistics managers are regarded as logisticians. Military personnel used the term "logistics" to describe the way they acquired, stored, and transported equipment and supplies.
The phrase is increasingly frequently used in the business world, especially by firms in the manufacturing industries, to describe how resources are managed and transported around the supply chain. A resource or input must be available in the proper quantity and timing, transported to the proper location in good condition, and delivered to the proper internal or external customer. This is the essence of logistics management.
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In the current year, Norris, an individual, has $50,000 of ordinary income, a Net Short Term Capital Loss (NSTCL) of $10,000 and a Net Long Term Capital Gain (NLTCG) of $2,800. From his capital gains and losses, Norris reports: A) an offset against ordinary income of $10,000
B) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,000.
C) an offset against ordinary income of $2,800 and a NSTCL carryforward of $7,200.
D) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,200.
E) an offset against ordinary income of $3,000 and a NSTCL carryforward of $4,200.
From his capital gains and losses, Norris reports:
an offset against ordinary income of $3,000 and a NSTCL carry forward of $4,200.
Capital is a vast term that can describe something that confers cost or advantage to its owners, including a manufacturing unit and its machinery, highbrow property like patents, or the economic belongings of a commercial enterprise or an individual.
A benefit is an increase inside the price of an asset even as a loss refers to the lack of value. each profits and losses can be divided into found out and unrealized. buyers understand a gain or a loss when they promote an asset, except the found out charge suits precisely what they paid.
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Open market operations are 1) the buying and selling of existing U.S, government securities in open private markets by the Fed. 2) the actions of the Fed that are used to finance deficit financing by the government. 3) the selling of new government securities in order to increase the money supply 4) the buying of existing corporate securities in secondary markets by private citizens, banks and the Fed.
The Fed engages in open market operations when it purchases and sells current U.S. government securities on public and private exchanges.
What is the term for the Fed's purchases and sales of securities?In order to regulate interest rates and the money supply, the Federal Reserve buys and sells government assets. Open market activities are what this activity is known as.
How does the Fed alter the amount of money in circulation through open market operations, often known as the buying and selling of government securities?Major Takeaways. Interest rates are manipulated by the Federal Reserve using open-market operations. The Fed influences demand by purchasing and selling assets to alter supply, which in turn affects demand and causes rates to rise or fall. One method by which the Fed affects the economy is through open-market activities.
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In a flywheel business, which of the following is the most important source of new prospects?
A. Marketing
B. Sales
C. Advertisements
D. Word-of-mouth
Answer:
marketing
Explanation:
the purpose of the statue of frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms.
The goal is to stop fraud and other wrongdoing.
What does the Statute of Frauds quizlet aim to accomplish?
The intention was to prevent anyone from falsely claiming that a contract covered by the act had been entered into based on fabricated oral testimony, as well as for judicial economy. CON: Enforcing a written agreement could nullify an oral one.
What does the law hope to achieve?
The act, which "covers all things confided to the authority of an agency or department," is seen as attempting to safeguard both the functioning and integrity of the government. Rogers v. United States, 466 U.S. 475, 479 (1984).
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In Kerberos, the ______ decrypts the ticket and authenticator, verifies the request, and creates ticket for requested server.
In Kerberos, the ticket-granting server (TGS) decrypts the ticket and authenticator; verifies the request; and creates a ticket for the requested server.
A ticket-granting server (TGS) refers to a logical key distribution center (KDC) component, which is used by the Kerberos protocol as a trusted third party. A ticket-granting server validates the use of a ticket for a particular purpose, such as network service access or server. It means that a user authentication token is issued by the key distribution center that is then used to request access tokens from the ticket granting service for specific systems/resources joined to the domain.
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Comprehension requirements for informed consent can be met by explaining the treatment plan, potential outcomes, and ______ .
This ought to be a skill with multiple components that can be broken down into individual steps. The prerequisites must be taught first if the student lacks those abilities.
How many times per month are you required to meet with your supervisor for RBT?
A minimum of 5% of each RBT's monthly hours spent providing applied behavior-analytic services must be under ongoing supervision. At least two monthly face-to-face, synchronous interactions with the supervisor must involve the supervisor observing the RBT providing services.
Which differential reinforcement strategy makes it possible to reward any behavior?
While this page focuses on DRA, differential reinforcement of other behaviors (DRO) is another type of differential reinforcement. With DRO, support is conveyed for all ways of behaving aside from the undesired way of behaving. As a result, DRO reinforces challenging behavior's absence or non-occurrence.
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a decrease in the mortgage rate will cause which of the folowing to happen in the loanable funds market
A decrease in the mortgage rate will cause Increase in demand in the loanable funds market.
What do mortgage rates actually mean?One of the fees associated with borrowing money from a lender is the mortgage rate, sometimes known as the mortgage interest rate or rate of interest. The interest is charged аѕ part of our monthly mortgage payment, not as a one-time payment to your mortgage lender.
What does having a high mortgage rate mean?The cost of a property has increased due to higher mortgage rates, but there is less competition because of the decline in demand. Due to this, buyers can purchase a home less than the asking price, or sellers may pay closing costs or mortgage points to help lower the high interest rates a little.
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of the following types of government spending, which are discretionary and which are mandatory components of a government budget?a. A new interstate highwayb. Medicarec. International aid
(a) New interstate highway is an example discretionary component of budget.
(b) Medicare & international aid is an example of mandatory component of budget.
What are discretionary and mandatory component of budget?Discretionary component: Spending that is subject to the appropriations process, in which Congress sets a new funding level each fiscal year (which starts on October 1st), is referred to as discretionary spending.
Roughly one-third, or roughly $1 trillion, of the federal government's activities are funded through appropriations legislation.
Mandatory component: All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes contributions to entitlement systems like Social Security and Medicare as well as required interest payments on the national debt. About two-thirds of all federal spending is accounted for through mandatory spending. Mandatory expenditure typically, but not always, is ongoing; it happens every year absent a change in the underlying law that supplies the cash.
(a) Spending that is discretionary is spending that must go via the appropriations process.
The construction of a new interstate is an optional component.Mandatory component of MedicareThe optional component of international aid.Spending that is mandated by laws other than yearly appropriation acts is referred to as mandatory spending.
Medicare was introduced in 1965.
(b) Mandatory expenditures
Explanation-Due to new entitlements like Medicare and Medicaid, the earn income tax credits, and the child tax credit, the United States spends up to 61% of its annual budget.
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_____ protects you against financial loss when your car damages other vehicles, street signs, or buildings. A. Bodily injury liability
B. Comprehensive physical damage
C. Property damage liability
D. No-fault insurance
E. Assigned risk coverage
Option A is correct. When you choose for collision damage auto insurance plan coverage, the fee of repairs to your car that has been broken is reimbursed.
To determine the cost of collision coverage, its age and Insured Declared Value are taken into account to arrive at the premium.
What is first and 0.33 birthday party insurance?A third celebration in an insurance coverage can be anyone. To specify, it can be any man or woman or property that receives affected by the first party's vehicle. Coverage. First-party insurance plan covers the damages or losses induced to the policyholder or his/her vehicle, alongside with third-party liabilities.
Physical damage insurance covers damage to the insured auto in opposition to many conditions like theft, fire, accidents, calamities, etc. and the collision cover gives insurance against injury due to the auto colliding with some other object. This is the fundamental difference between physical harm cowl and collision cover.
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Keystone Healthcare Corp. is proposing to spend $139,360 on a six-year project that has estimated net cash flows of $32,000 for each of the six years.
a. Compute the net present value, using a rate of return of 12%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. Use the minus sign to indicate a negative net present value.
Present value of annual net cash flows $fill in the blank 1
Less amount to be invested $fill in the blank 2
Net present value $fill in the blank 3
b. Based on the analysis prepared in part (a), is the rate of return (1) more than 12%, (2) 12%, or (3) less than 12%?
c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presented above.
fill in the blank 5 %
(a) The Net present value at 12% is $364,256.00, (b) Based on the analysis prepared, the rate of return is lower than 12%. Option B. (c) The international rate of return is 44% and Present value of annuity is $2033.30
How to determine the NPV?We should know that net present value (NPV) is a series of cash flows occurring at different times.
Let us use the table to determine the NPC
Year CF DF(12%) PV DF(10%) PV
1 32000 0.893 28576 0.909 29088
2 32000 1.690 54080 1.736 55552
3 32000 2.402 7664 2.487 79648
4 32000 3.037 97184 3.170 101440
5 32000 3.605 115360 3.791 121312
6 32000 4.111 131552 4.355 139360
Total 503616 526400
12% 10%
PV of annual net cashflow 503616 526400
Less amount to be invested 139360 139360
Net Present Value 364256 387040
Internal Rate of Return
IRR = LR + [tex]\frac{NPV_{LR} }{NPV_{LR}-NPV_{HR} } *HR-LR[/tex]
Where
IRR= Internal Rate of Return
LR= Lower rate
HR= Higher rate
NPV= Net present value
Applying the formula
IRR=0.1+[tex]\frac{387040}{387040-364256} *0.12-0.10[/tex]
Simplifying the expression to get
IRR= 0.10+[tex]\frac{387040}{22784} *0.02[/tex]
IRR=0.44*100
IRR=44%
Present Value of Annuity.
A.= [tex]\frac{P}{CDF}[/tex]
Where
A=Annuity when constant sum is given
P=Principal sum/Present value
CDF= Cumulative discount factor at the rate given over the entire period
A= 32000/15.738
A. = $2033.30
Therefore the Annuity is $2033.30
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Examining evidence on the impacts of increases in state minimum wages in New Jersey and California, card and krueger found
After the inspection, the results appear. The result is no evidence of reduced employment.
Inspection is an examination involving tests, and measurements made based on certain characteristics related to the object of inspection. Inspection is performed to check the object to ensure that the object meets certain standards. When an inspection is carried out, it is necessary to ensure that nothing is wrong or violates the law. Inspections can be carried out on products to be marketed, an organization, to buildings.
Inspection Purpose
Improve quality.Prevent problems caused by poor quality and reduce complaints.Provide notice to management before a problem becomes serious, so that management and the board of directors can take further action.You can learn more about Inspection here brainly.com/question/28546774
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Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the: Multiple Choice Sales budget Overhead budget. Selling expense budget. General and administrative expense budget Cash payments budget
The Correct option is D. Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the General and administrative expense budget.
A price is a value that companies incur in walking their operations. prices include wages, salaries, renovation, hire, and depreciation. charges are deducted from sales to arrive at profits. businesses are allowed to deduct sure charges from taxes to help alleviate the tax burden and bulk up earnings.
In easy terms, charges suggest a cost. In accounting phrases, the expense is the operational value this is paid to earn commercial enterprise revenues. It method the outflow of coins in go back for items or services. costs can also be written as the sum of all of the operations that normally bring income.
Expenses and costs are comparable concepts, and they may be once in a while used interchangeably, but there are some differences for companies to remember. A cost generally refers back to the fee paid to accumulate an asset, at the same time as a rate is an ongoing cost, inclusive of an employee's income or hire on a retail space.
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Complete Question:
Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the:
A). Overhead budget.
B). Selling expense budget.
C). General and administrative expense budget.
D). Cash payments budget.
Transfer pricing exists when one division of a company produces a product that can be used in the production by a different division. A. TrueB. False
The transfer price is revenue to the selling division and cost to the buying division. The given statement is true.
What is transfer price?
Transfer pricing in taxation and accounting refers to the guidelines and procedures for valuing transactions within and between businesses that share ownership or control.
When one division of a company produces a good that another division can use in production, transfer pricing exists. The selling division receives revenue from the transfer price, and the buying division incurs costs. The absolute maximum price that can be accepted is the minimum transfer price.
The price that is charged when one department of a company sells products or services to another department. the cost that one division levies. For a middleman, another division of the same business.
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According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies
False
This is false. According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.
What is the most important quality of a good board of directors?The personal traits of your board's members are essential to its effective operation. Integrity, skill, wisdom, insight, commitment, and effectiveness are essential. Key characteristics of a successful board member include: Passion: a genuine interest in your organization's mission.
A board of directors' primary duty, whether they work for a publicly listed company, a privately held company, or a nonprofit organization, is to offer direction and control so that the latter can carry out its objectives.
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According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies
False / True
Accounting Equation
Jan Petri is the stockholder and operator of Galaxy LLC,
a motivational consulting business. At the end of its
accounting period, December 31, 20Y2, Galaxy has
assets of $552,000 and liabilities of $132,000. Using the
accounting equation, determine the following amounts:
a. Stockholders' equity as of December 31, 20Y2.
LA
X
b. Stockholders' equity as of December 31, 20Y3,
assuming that assets decreased by $105,000 and
liabilities decreased by $32,000 during 20Y3.
A
X
The Stockholders' equity as of December 31, 20Y2 is $420,000.
The Stockholders' equity as of December 31, 20Y3 is $347,000.
What is the Stockholders' equity as of December 31, 20Y2?Stockholders' equity mean the assets remaining in a business once all liabilities have been settled. It is calculated by subtracting the total liabilities from total assets or by taking the sum of share capital and retained earnings, less treasury stock.
The General accounting equation is "Total assets = Total stockholder equity + Total liabilities"
The total stockholder equity is:
= Total assets - total liabilities
= $552,000 - $132,000
= $420,000
In case of decrease in assets and liabilities, the total stockholder equity is:
= Total assets - total liabilities
= ($552,000 - $105,000) - ($132,000 - $32,000)
= $347,000.
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