Purchase Solution

Assets

Not what you're looking for?

Ask Custom Question

If a company purchases equipment for $75,000 cash:
a) Total assets will increase by $75,000.
b) Total assets will decrease by $75,000.
c) Total assets will remain the same.
d) The company's total owners' equity will decrease

Purchase this Solution
Solution Summary

This explains what happens to assets when equipment is purchased.

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Introduction to Finance

This quiz test introductory finance topics.

Motivation

This tests some key elements of major motivation theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Le Blue Company's Net Fixed Assets

    The accounting equation is: Assets = Liabilities + Equity Asset=Fixed Assets + Current Assets Liabilities=Current Liabilities + Long Term Debt So, we have the accounting equation written a different way: Fixed Assets + Current Assets = Current

  • Accounting Equation

    Total Assets = current assets + non current assets Non current assets = 95,000-25,000=70,000 2. If the current ratio is 2.2:1, current assets are 33,000, and noncurrent assets equal $55,000, then owners' equity is _____ .

  • The Griggs Corporation: Creating a Balance Sheet from Ratios

    = $10,000 Inventory = $120,000 Fixed assets = Total assets - current assets Current assets / current debt =2 Current assets = $10,000+$150,000+$120,000+$280,000 Current debt = Current assets / 2 Fixed assets = $500.000-

  • Current and Noncurrent Assets are Defined and Compared

    CURRENT AND NONCURRENT ASSETS Assets are considered as resources owned by the firm and are of three categories - current assets, fixed assets, and other assets.

  • Return on assets

    Equity /Total Assets= 1- (debt/total assets) =1-.6 =.4 or 40% Hence ROE= Net Income/equity =Return on Assets*Total Assets/Equity =12.5%*1/.4 =31.25%=Answer 2.

  • Financial statement analysis

    ) Debt to Assets Ratio= Debt / Total Assets = 55% (Given) Therefore, Total Debt = Total Assets x Debt to Assets ratio= $247,500 =$450,000 x 55.% e) Stockholder's Equity Total Assets= $450,000 (Calculated

  • FASB Statement Classification Assets

    response is 401 words The three classifications of net assets established by FASB statement 117 are: permanently restricted net assets temporarily restricted net assets and unrestricted net assets (www.fasb.org).

  • Thomas Lane Company: calculate return on equity and return on equity ratio

    (Total Debts) / (Total Assets) = 0.4 *Assets = Liabilities + Shareholder Equity 1= (Total Debts) / (Total Assets) + (Shareholder Equity) / (Total Assets) 1= 0.4 + (Shareholder Equity) / (Total Assets) (Shareholder Equity) / (Total

  • DuPont formula for Southwest Airlines, Caterpillar, and Proctor and Gamble

    Southwest Airlines's ROE using the DuPont ratio. 2005: ROE = (Profit margin) (Total assets turnover) (Equity multiplier) = (Net income / sales) (sales / total assets) (total assets / common equity) = (484 / 7,584) (7,584 / 14,003) (14,003 / 6,675)

  • Lily Cosmetics

    Equity Total Assets = Debt+Equity Total Assets = 0.5Equity + Equity Total Assets = 1.5 Equity Return on Equity = Net Income/Equity = Net Income/Sales X Sales/Equity Sales/Assets = 4 sales = 4 Assets and Assets = 1.5 Equity Sales = 4X1.5 Equity

View More Related Solutions