Vogel Company purchased $8,000 of equipment by making a $500 down payment and issuing a note for the remainder. As a result of this event, assets increased by $8,000.

Answer the following statement true (T) or false (F)


False

Assets (equipment) increase by $8,000 and assets (cash) decreases by $500, for a net increase of $7,500. Liabilities (notes payable) increase by $7,500.

Business

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Variable costs are costs that vary in total in direct proportion to changes in the activity level

Indicate whether the statement is true or false

Business

Process analyses are identical to instructions

Indicate whether this statement is true or false.

Business

Firms do not usually get rewarded by diversifying investments in different lines of business because ________

A) the capital markets are efficient and they quickly respond to change in economic conditions B) cash flows from such projects tend to respond less to changing economic conditions C) investors themselves can diversify by holding securities in a variety of firms; they do not need the firm to do it for them D) it is not possible for a firm to diversify its risk as the inflation premium is different for different projects

Business

_____ sampling is a probability sampling procedure in which every sampling unit has a known and equal chance of being selected.

A. Quota B. Judgment C. Simple random D. Convenience E. Cluster

Business