Describe the significance of the accounting equation.
What will be an ideal response?
The accounting equation is significant because it relates how the capital provided to the firm (equity and debt) are used to fund the acquisition of holding of assets. In turn, these assets are the source of future income for the firm. By understanding the relationship between the assets, liabilities, and equity currently stands and has changed, the entrepreneur can get an indication of the health of the company.
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When BMW Motorcycles first began targeting some advertisements toward females, the impact was minimal at first, but after some time passed began to have an impact on inquiries by females and later on sales revenue. This illustrates the concept of:
A) impact of communication goals on sales revenues B) threshold effects C) sales-response function curve D) carryover effect
All product costs other than direct materials and indirect labor are called overhead
Indicate whether the statement is true or false
Nunavet Ocean Cruises sold an issue of 12-year $1,000 par bonds to build new ships. The bonds
pay 4.85% interest, semiannually. Today's required rate of return is 9.7%. How much should these bonds sell for today? Round off to the nearest $1. A) $771.86 B) $660.45 C) $732.93 D) $598.33
The Railway Labor Act, passed in 1926, prohibits railroad employees from designating bargaining representatives of their own choosing
Indicate whether the statement is true or false