True, The statement is true that the assets of the firm are financed with liabilities and stockholder's equity.
Because the total assets are equal to total liability and stockholder's equity. Total liability include the current liability and long term loan and stockholder's equity includes common stock and retained earnings of the company. So as total assets are equal to total liability and stockholder's equity it means the total assets are financed with liabilities and stockholder's equity.
Question 7 (2 points) Assets of a firm are financed with liabilities and stockholders' equity. 1)...
The Ratio of Liabilities to Stockholders' Equity measure how much of the company is financed by debt and equity. O True O False
5 value: 15.00 points The accounting equation can be stated as: Assets + Liabilities Stockholders' equity O Assets - Liabilities Stockholders' equity O Assets Liabilities-Stockholders' equity Assets + Stockholders' equity Liabilities
Stockholders equity is equal to liabilities plus assets. True False If a firm sells 80,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $95,000, what is the firm's breakeven point in units? $33,444 units $28,640 units 31,667 units Not enough information is given to determine, Refer to the following table: Sales (1,000,000 units) Variable costs Fixed costs Interest $2,000,000 700,000 400,000 150,000 225,000 $525,000 Taxes Net income The degree of...
#1 and #2
1. The accounting equation may be expressed as: A. Assets + Stockholders= Equity = Liabilities B. Assets = Liabilities + Stockholders= Equity C. Assets = Stockholders= Equity - Liabilities D. Assets + Liabilities - Stockholders= Equity 2. Probable future economic benefits obtained or controlled by an entity as a result of past transactions or events are known as: A. Assets B.Liabilities C.Stockholder's Equity D. Revenues
Claims to economic resources” are known as Assets and liabilities Liabilities and stockholders’ equity Owners’ equity and stockholders’ equity Retained earnings and revenues
Q1. Firm XYZ is currently financed entirely with equity. The market value of the firm's assets and equity is ?? = ?? = 500, and the expected return on the firm's assets and equity is ?? = ?? = 12.5 percent. Suppose the firm issues debt with a value of ? = 200, and uses the proceeds to retire equity. The market value of the firm remains the same, ?? = ?? + ? = 500. If the expected return...
a. Paid research and development expenses for the current year Assets increase Liabilities Stockholders' equity b. Purchased machinery and equipment for cash. Assets Liabilities Stockholders' equity c. Received cash from issuing stock. < Assets Liabilities Stockholders' equity d. Received cash from the issuance of long-term debt. Assets Liabilities Stockholders' equity e. Made cash sales. Assets Liabilities Stockholders' equity nts eBook Calculator f. Paid selling expenses. Assets Liabilities Stockholders' equity g. Pald employee pension expenses for the current year. Assets Liabilities...
Assets Current Assets Cash Accounts receivable Liabilities and Stockholders' Equity Current liabilities Accounts payable 640,000 Notes payable to banks 120,000 150,000 ($ less Accrued wages allowance for doubtful accounts of $10,000) 1,170,000 80,000 1,190,000 Inventory Taxes Owed Total current liabilities Long-term debt 1,620,000 $ 020, TO Total current assets Land Plant and equipment ($2,330,000 less accumulated depreciation 1,400,000 4,610,000 Stockholders' equity Common stock ($1 par, 610,000 shares authorized, 580,000 outstanding) Retained earnings Total stockholders' equity $ Total liabilities and equity...
The accounting equation for Landscape Enterprises is as follows: Assets Liabilities $540,000 + Stockholders' Equity. $540,000 $1,080,000 + If the company now pays employee wages for $90,000, the accounting equation will change to: Select one: A. Assets $1,170,000 = Liabilities $540,000 Stockholders' Equity $630,000 + B. Assets $990,000 - Liabilities $540,000 Stockholders' Equity $450,000 C. Assets $1,170,000 = Liabilities $630,000 Stockholders' Equity $540,000 + O D. Assets $990,000 = Liabilities $450,000 Stockholders' Equity $540,000 +
The accounting equation is defined as: Multiple Choice Assets = Liabilities - Stockholders' Equity. Net Income = Revenues - Expenses. Assets = Liabilities + Stockholders' Equity. Liabilities + Revenues - Assets.