Megan purchased a new vehicle for $40,000. She put $5,000 down and financed the $35,000 balance over 5 years. What is the impact of this transaction on her net worth?

Answers

Answer 1

Answer: c. Her net worth remains the same.

Explanation:

Her Net worth would be her assets less her liabilities.

Her added Assets would be the new vehicle less the amount she put down for it as this would reduce her cash holdings.

Her added liabilities would be the amount she owes from buying the car

= Net Assets - Liabilities

= ( 40,000 - 5,000 ) - 35,000

= $0

The addition to her Net Worth is zero so her net worth remains the same.


Related Questions

In 2010, us nominal gdp was estimated to be $14.657 trillion dollars while the real gdp was estimated to be $13.245 trillion. why the difference? what is the significance of the difference between these two measures of gdp? do you expect nominal gdp to be higher than real gdp for most years? explain.

Answers

Answer:

Nominal gross domestic product (GDP) measures the market value of all the new and legal goods and services produced in a country within a year. While real GDP adjusts nominal GDP to inflation. Since inflation is generally positive, real GDP decreases as inflation increases. The higher the inflation rate, the larger the difference between nominal and real GDP. Depending on which year is used as base year (year 0), the difference that existed in 2010 can be either significant or not.

The difference = ($14,657 / $13,245) - 1 = 10.66%, which means that nominal GDP was 10.66% higher than real GDP. If the base year is 2000 or even 2005/6, the difference is very small since the accumulated inflation would only be 10.66% for all these years. But if the base year was 2008 or even 2009, then the inflation rate is high.

Claude is an investment adviser representative. One of his clients has recently bought and sold into and out of several investments. None of the investments were held for more than 6 months, and the investor is now asking Claude how to best compare the returns. Claude tells the client to annualize the returns. Why is annualizing the returns a good idea

Answers

Answer:

[A] Annualizing the returns would give the client the best representation of each individual investment and allow a better comparison of the performance of all of the investments side-by-side.

Explanation:

At the time when the holding period is varied so it provide the accurate and correct picture of returns, Also in the short periods without considering the annualizing it does not generate the best picture

With short terms returns it does not present the returns that is realized for a longer period of time but here the annualizing would not be same as if is comparing a holding period return with respect to the benchmark

Therefore in the given case, the option A is correct

An emphasis is placed on proper income statement item recognition under what approach under US GAAP?

Answers

Answer:

Revenue /expense approach

Explanation:

As we know that the income statement recognized only the revenues and the expenses and if the revenue is more than the expenses so the company is earning profit else it would suffered loss

So for proper income statement, the item recognized under US GAAP should be placed in revenue and expense approach as it comes under the income statement and the same is to be considered

In a small company's accounting department, the accounts receivable
coordinator often takes the role of the
A. accounting manager
B. credit and collection manager
c. payroll administrator
D. bookkeeper

Answers

Answer:

B

Explanation:

His job is to collect and record credit

In a small company's accounting department, the accounts receivable

coordinator often takes the role of the B) credit and collection manager.

What's the accounts receivable job description?

Prepares, posts verifies and records purchaser payments and transactions associated with bills receivable. Creates invoices in step with company practices; submits invoices to customers. keeps and updates customer files, inclusive of name or address adjustments, mergers, or mailing attentions.

The Accounting Coordinator reviews at once to the Accounting supervisor and could on the whole be chargeable for getting ready, recording and administering Payroll and advantages, bills Payable, preferred Ledger, and helping with different monetary reporting approaches.

Learn more about the accounts receivable coordinator here https://brainly.com/question/17548249

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The ________ simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic behavior.

Answers

Answer:

Circular flow diagram.

Explanation:

The circular flow diagram simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic behavior.

The firm sells their goods and services in the market while the household buys these goods and services.

Hence, the circular flow diagram represents the interaction between the household and firms with respect to the market.

How can you keep yourself updated on the health and safety skills required for your job? A. by reading daily news B. by awaiting employer’s training intervention C. by discussing with colleagues D. by downloading relevant apps available on the Internet

Answers

Answer:

D  internet

Explanation:

You should proactively keep yourself updated on the health and safety skills relevant to your profession. You can also use various apps available on the Internet. You can download these apps on your computers to upgrade your knowledge.  

I just took the test and got it right.

You can keep yourself updated on the health and safety skills required for your job by downloading relevant apps available on the Internet. Option (d) is correct.

What do you mean by Safety?

Safety refers to the state of not experiencing or causing harm, injury, or loss.

Your workplace will be more productive and effective if you take steps to protect your employees. According to research, employees who work in environments that prioritize health and safety are more productive. Your organization will experience less disruption and spend less money if illness and accident-related downtime are reduced.

Therefore, Option (d) is correct. By downloading relevant apps available on the Internet.

Learn more about Safety, here;

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"During this period, employees had more input into management decisions and how they performed their jobs. The use of groups and teams also became popular." To which of the following periods are these statements referring?
A. The 1960s
B. The 1990s
C. The 1970s
D. The 1980s

Answers

Answer: The 1990s

Explanation:

The aim of human relations is to enable the creation of a win-win scenario such that employee needs can be satisfied and organizational objectives can also be achievable.

In the 1990s, employees had more input into management decisions and how they performed their jobs. Also, the use of groups and teams also became popular.

Which of the following items is a wardrobe essential for both men and women?
O Khaki pants
O Button-up shirt
O Jeans
O Sneakers

Answers

Answer:

Jeans

Explanation:

If you look around you are most likely to see more men than women wearing Khakis and most women don't wear button-up shirts

Sneakers are more worn by men.

"A floor broker enters the crowd around the Specialist's (DMM's) post to buy 20,000 shares of ABC at the market for a public customer. The Specialist (DMM) tells the trader "20,000 shares of ABC have been stopped at 25." This means that:"

Answers

Answer: the Specialist/DMM has therefore guaranteed $25 to the trader.

Explanation:

A floor broker is simply referred to as an exchange independent member who acts as a broker for members who are being overloaded with orders

A floor broker enters the crowd around the Specialist's (DMM's) post to buy 20,000 shares of ABC at the market for a public customer. The Specialist (DMM) tells the trader "20,000 shares of ABC have been stopped at 25." This means that the Specialist/DMM has therefore guaranteed $25 to the trader

A client's respiratory status may be affected after abdominal surgery. The nurse documents the behavioral objective for this client. What statement is a behavioral objective?

Answers

Answer: Demonstrates the technique of coughing and deep breathing

Explanation:

The behavioral objective the nurse documents or would document would relate to how he acts or live with these Illness, an example is in his coughing and breathing, how well he breath, she does a round of counting, monitoring how heavy he breaths too. When she monitors all these, she is then able to compute an analysis for the objective on how the sick patient is.

Charles Clinton Spaulding, one of the pioneering theorists of administrative management, proposed eight _____ of management based in part on his childhood experiences working at his father's fields.
A. foundations
B. necessities
C. considerations
D. fundamentals

Answers

Answer:

B, Necessities

Explanation:

Administrative management can be defined as the process of managing information between people in an organization.

One of the pioneering theorists of administrative management was Charles Clinton Spaulding. He was an African-American business leader as well as the  head of an insurance company, Mutual life insurance company, the largest black business in the USA at the time.

He postulated 8 necessities of administrative management and they are

1. Cooperation and teamwork

2. Authority and responsibility

3. Division of labor

4. Adequate manpower

5. Adequate capital

6. Feasibility studies/analysis

7. Advertising budget

8. Conflict resolution

Cheers.

John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 10 equal annual payments. What are John's annual payment amounts?

Answers

Answer:

$20,380.16

Explanation:

in order to find the annual payment, we can use the present value of an annuity formula:

present value = annual payment x PV annuity factor

present value = $150,000PV annuity factor (6%, 10 periods) = 7.3601

annual payment = present value / annuity factor = $150,000 / 7.3601 = $20,380.16

From the perspective of a cashier in a supermarket, the appropriate level for the process scope is __________.

Answers

Answer: A. the customer checkout process.

Explanation:

A Process scope refers to the activities performed in one's job level that are necessary to transform inputs into output.

In the case of a Cashier at a supermarket, their job level requires them to take inputs ( good purchased by customers) and transform them to output (process customer payment) which represents the process of a customer checking out.

Their process scope therefore would be just that, the customer checkout process.

A consumer values a car at $20000 and it costs a producer $15000 to make the same car. If the transaction is completed at $18000, the transaction will generate:

Answers

Answer:

The transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

Explanation:

A consumer values a car at $20,000

It costs a producer $15,000 to generate that same car

The transaction is complete at $18,000

The first step is to calculate the buyer's surplus

= $20,000-$18,000

= $3,000

The seller's surplus can be calculated as follows

= $18,000-$15,000

= $3,000

Hence the transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

Pablo bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $300 less than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 6% per year, and for the laptop it was 7% per year. The total finance charges for one year were $252. How much did each computer cost before finance charges?

Answers

Answer:

Desktop Cost = $2,100

Laptop Cost = $1,800

Explanation:

Let A = Cost of desktop

Let B = Cost of Laptop

The total finance charge for 1 years is given by

(0.06)A + (0.07)B = 252

(0.06)A + (0.07)(A-300) = 252

(0.06)A + (0.07)A-300 = 252

(0.06)A + 0.07A - 21 = 252

(0.06)A + 0.07A = 252 + 21

0.06A + 0.07A = 273

0.13A  = 273

A = 2100

Hence, Desktop Cost = $2,100

Therefore, the Laptop Cost = $2,100 - $300 = $1,800

what is the importance of small businesses

Answers

Explanation:

Business majors learn how to research information using quantitative skills, and then develop ideas based on that information to solve problems.

It helps us cater for our family hence reducing financial stress.

Under what approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations?

Answers

Answer:

Legal approach

Explanation:

The legal approach refers to an approach which brings every individual as a unique. All persons have to follow the laws enacted by the government if not followed than penalty should be levied. It derives the equivalent protection and the law safety with respect to the society

Therefore according to the given situation, it is a legal approach and the same is to be considered

Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. this reflects a change in the ____ component of the general environment.

Answers

Answer:

political/legal

Explanation:

The components of the general environment helps individuals to identify opportunities and threats that exists in an environment and take adequate measures to avoid or exploit them.

In the political/legal component of environment consideration is given to anti trust laws, taxation laws, deregulation, labour laws, and educational policies.

It looks at the legal implications of an action.

In this scenario where fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees, they are considering the political/legal environment.

A recently issued FASB standard requires that companies recognize revenue when goods or services are_____to customers for the amount the company expects to be entitled to receive in exchange for those goods or services.

Answers

Answer:

Transferred.

Explanation:

FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).

A recently issued FASB standard known as the core revenue recognition principle, requires that companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services.

Yuri wants to pay for his new chair using a check. What must he consider before using that method of payment? Yuri must check his credit history. Yuri must know the interest rate on a furniture loan. Yuri must be sure he has enough left in his checking account for any expenses and automatic payments. Yuri must check his credit card balance.

Answers

Answer:

C. Yuri must be sure he has enough left in his checking account for any expenses and automatic payments.

Explanation:

There are different ways to make payment. What he must consider  is that Yuri must be sure he has enough left in his checking account for any expenses and automatic payments.

What is checking account?

A checking account is known to be a  type of bank account that allows a person to make deposit and withdrawal of their  money for daily transactions very easy.

This also include when one deposit a check that one receive, taking out cash from the account with your debit card and others. He must make sure he has enough left in his checking account before ordering.

Learn more about  automatic payments from

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A publisher for a new novel figures fixed costs (overhead, advances, promotion, copyediting, typesetting) at $55,000. Variables costs (printing, binding, shipping, and paper) are $1.60 per book. The publisher plans to sell the book to distributors for $11 each. How many books must be produced and sold for the publisher to break even

Answers

Answer:

Break-even point in units= 5,851 units

Explanation:

Giving the following information:

Fixed costs= $55,000

Unitary variable cost= $1.6

Selling price per unit= $11

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 55,000 / (11 - 1.6)

Break-even point in units= 5,851 units

An existing comment can be edited in the _____.

Answers

Answer:

Reviewing pane

Explanation:

Larry is part of the Board of Governors that manages U.S. Monetary policy. He has been elected by the President to serve a single 14-year term. In addition to setting the monetary policy, he is responsible for extending banking services to commercial banks. I

Answers

Answer:

Federal Reserve

Explanation:

Federal Reserve System is the financial institution and the central bank of the U.S. The institution provides financial aid to the country. It helps in regulating and maintaining the financial and banking service of the country. All the requirements and responsibilities of the Federal Reserve are laid on the Board of Governors. They help in setting the rate of the discount and rate of interest on the loans.

In the given excerpt, Larry is the part of the Board of Governors in the Federal Reserve System.

Liabilities and stockholders' equity of a company are $50,000 and $150,000, respectively. Determine assets using the accounting equation.

Answers

Explanation:

*Stationary items*

*1) gel pen 3*

*2) Clutch pencil*

*3) eraser/sharpner*

*4) beads pencils*

Benito’s family is thinking of relocating from Los Angeles to Oakland to save money. They set up a budget comparing the cost of living for both cities.How much money will they save monthly by the move to Oakland? $1315 $1560 $1665 $1765

Answers

Answer:

$1315

Explanation:

by comparison of living standards in both Los Angeles and Oakland, a move to Oakland will mean that Benito's family saves $1315 more than they were able to save in Los Angeles. This because the standard of living in Oakland is not as expensive as Los Angeles.

Cheers.

Answer: First option, (A) $1315

A municipality wants to build a water treatment facility, and requires some privately owned land to do so. What procedure enables the municipality to buy the property, even against the owner's wishes?

Answers

Answer:

Eminent Domain

Explanation:

The procedure that allows for this is known as Eminent Domain. This allows for the municipality (government) to take private property and convert it into public use if and only if they provide just compensation to the property owners. This procedure is protected/provided by the Fifth Amendment and allows the government to do so even if the property owner does not want to relinquish ownership.

In Benny v. City Car Dealership, a state supreme court held that a minor could cancel a con-tract for the sale of a car. Now a trial court in the same state is deciding Daphne v. Even Steven Auto Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to


a. allow the minor to cancel the contract.

b. disregard the Benny case.

c. order the minor to cancel the contract.

d. require the minor to fulfill the contract.

Answers

The answer is definitely d

Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownership stakes to a large number of contributors before they can raise funds to bring products to market.A. TrueB. False

Answers

Answer:

B. False

Explanation:

As the name suggests that crowdfunding refers to the funding for a project by having a small amount from the public at large in an internet

Since in the question it is mentioned that the founders should put efforts for giving the high stake of ownership with respect to high contributors before raising the funds to launch a product in the market

But this above requirement should not be necessary

Therefore the given statement is false

Correctly match each scenario relating to probable future losses that exist at the balance sheet date with the correct accounting treatment._____Amount of future loss cannot be reasonably estimated_____Amount of future loss can be reasonably estimateda. Accrueb. Disclose only

Answers

Answer and Explanation:

In case when the company expected that there is any losses that arise in the future and the same is to be presented in the balance sheet by considering the accurate accounting treatment so the terms that should be used is as follows

For the future loss that does not reasonably predicted should be disclosed only

And, the future loss that can be reasonably predicted should accrue

The same is to be considered

Identify the uses of generally accepted accounting principles (GAAP). A. Independent accountants use GAAP to determine the amount of bonuses to be paid to executives. B. Companies use GAAP when preparing financial statements. C. Government uses GAAP to appoint board members for public companies. D. Auditors need to be sure the financial statements are prepared in accordance with GAAP.

Answers

Answer:

The correct option is;

B. Companies use GAAP when preparing financial statements

Explanation:

Generally Accepted Accounting Principles (GAAP) are the guidelines with regards to the standards, principles, practices and procedures of financial statement compilation by accountants issued by the Financial Accounting Standards Board (FASB). It is a requirement that all publicly quoted companies make use of GAAP for their financial compilation.

GAAP comprises of the generally accepted accounting records reporting and recording methods as well as policy board standards of accounting procedures.

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