Ask Question
BusinessBusiness
24 March, 06:35

All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the accounting equation. d. None of these choices are correct.

+3
Answers (1)
  1. 24 March, 09:25
    0
    c. changes in the elements of the accounting equation.

    Explanation:

    Accounts have a standard equation, where

    Assets = Liabilities + Stockholder's Equity

    Whenever, there is an accounting transaction that transaction must be represented in numerical values, but it is not necessary that the transactions shall have a cash effect.

    As for example, sale of products on credit will not involve cash.

    An acquisition of fixed asset on credit will not impact the owner's equity, as with increase in asset there is equal increase in liability and accordingly, no change in owner's equity.

    There is always a change in elements of accounting equation.

    As for sale on credit there will be a change in assets in the form of receivables and change in stockholder's equity as increase in revenue would lead to increase in retained earnings.

    Therefore, Statement C is correct

    c. changes in the elements of the accounting equation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using: product costing absorption costing operations costing variable costing?
Answers (1)
A private oil company is embarking on a joint pipeline project with the government. Which type of network will they set up for project management?
Answers (1)
Given an anticipated inflation premium of 1.45% and a real rate of interest of 4.34%, what is the nominal interest rate? Round your answer to 4 decimal places. Group of answer choices
Answers (1)
MC Qu. 110 Southland Company is preparing ... Southland Company is preparing a cash budget for August. The company has $17,100 cash at the beginning of August and anticipates $121,000 in cash receipts and $134,600 in cash disbursements during August.
Answers (1)
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,200. In addition, City paid sales tax and title fees of $750 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,280.
Answers (1)
New Questions in Business
Have you ever had an experience where you were not fully aware of what you were purchasing or service you were agreeing to?
Answers (1)
Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,820 kits was prepared for the year.
Answers (1)
What is the major advantage of an LLP? a. It limits the personal liability of partners to only their own wrongful acts. b. It increases the liability of the partners. c. It allows the partnership to be taxed as a corporation.
Answers (1)
A firm has a positive net worth and is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and the company wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require
Answers (1)
Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $1.90 and total fixed costs are $10,000. The cat food can be sold as it is for $9.
Answers (1)
Home » Business » All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the accounting equation. d. None of these choices are correct.
Sign Up Forgot Password?