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A firm's purchase of plant and equipment would be considered a?
capital expenditure, as it involves a long-term investment in physical assets that will be used to generate revenue over multiple accounting periods. This type of expenditure is typically recorded as an asset on the balance sheet and depreciated over its useful life.
Why use a purchase order?
A purchase order is used to legally document the agreement between a buyer and a seller for the purchase of goods or services. It helps track and authorize purchases, ensures the correct items are received, and provides a record for accounting and auditing purposes.
What is a community bond?
A community bond is a type of financial instrument that allows local organizations or municipalities to raise funds from community members to support specific projects, such as infrastructure improvements or social initiatives. Investors purchase these bonds, effectively lending money to the community in exchange for a return on investment over time. This approach fosters community engagement and investment while providing capital for projects that benefit the local area. Community bonds often emphasize social impact alongside financial returns.
When was The Purchase of the North Pole created?
The Purchase of the North Pole was created in 1889.
Where can one purchase a microwave plate?
You can purchase a microwave plate online from stores such as Walmart. Alternatively, you can also purchase this item online from retailers such as Amazon.
Accounting equation for purchase supplies for cash?
supplies cash
Does investment include the purchase of stocks and bonds?
Not sure, but it includes a computer by an accounting firm if investment as defined by economists.
How does the purchase of equipment by signing a note affect the accounting equation?
asset increased, liability increased
How does the purchase of supplies on account affect the accounting equation?
When supplies are purchased on account, it increases assets and liabilities in the accounting equation. Specifically, supplies (an asset) increase, while accounts payable (a liability) also increase by the same amount. This keeps the accounting equation balanced, as the increase in assets is offset by an equal increase in liabilities.
What is an expanded basic accounting equation?
The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).
What is the difference between purchase and pooling accounting methods?
1. In case of Pooling Accounting new balance sheet of the combined company is created whereas in case of Purchase Accounting no new balance sheet is prepared. Thepurchasing company adds the assets of the acquired company to its balance sheetusing a fair market value.2. In case of Pooling Accounting it is basically the merging of two companies whereas incase of Purchase Accounting the acquired company is known as investment.3. In case of Pooling Accounting 'who is buying whom' is not clearly stated whereas incase of Purchase Accounting 'who is buying whom' is clearly stated.4. In case of Pooling Accounting it didnot record the price the acquiring company has topay for the acquisition whereas in case of Purchase Accounting it is valued using thefair market value.Answer by,Mr. Shabbir Alam
If a company uses 1430 of its cash to purchase supplies the effect on the accounting equation would be?
When a company uses $1,430 of its cash to purchase supplies, the accounting equation (Assets = Liabilities + Equity) is affected by a decrease in cash (an asset) and an increase in supplies (also an asset). The overall total of assets remains unchanged since one asset is exchanged for another. Therefore, there is no impact on liabilities or equity.
What is the relationship between financial accounting and mathematics?
Accounting has close relationship with mathematics. The dual aspect concept, which is the basic concept of accounting, is expressed as a mathematical equation, known as accounting equation. Accounting computations such as computation of depreciation, determination of loan instalment, ascertaining of cash price in case of hire purchase and instalment systems requires use of mathematical techniques. Accountants now use statistical models, computers and operation research techniques. All these require knowledge of mathematics.
What is the Relationship between financial and accounting?
Accounting has close relationship with mathematics. The dual aspect concept, which is the basic concept of accounting, is expressed as a mathematical equation, known as accounting equation. Accounting computations such as computation of depreciation, determination of loan instalment, ascertaining of cash price in case of hire purchase and instalment systems requires use of mathematical techniques. Accountants now use statistical models, computers and operation research techniques. All these require knowledge of mathematics.
What is a customer transfer dr investment purchase?
What is customer transfer dr investment purchase ?
What is purchase in accounting?
Purchase is that in accounting that what we are purchasing and purchase is to be done by cash ,by cheque. eg: purchase Bag of rs500, so here bag is debited and cash is credited.
Can a business purchase stock for investment purposes?
Yes, a business can purchase stock for investment purposes.
