The home is worth approximately $179,084.77 today.
To find out how much Michael and Sandy's home is worth today, we need to use the formula for compound interest.
The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the final amount, P is the initial principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
Using this formula, we can plug in the given values:
A = $100,000(1 + 0.06/2)^(2*5)
A = $100,000(1.03)^10
A = $100,000(1.344)
A = $134,400
Therefore, Michael and Sandy's home is worth $134,400 today if it appreciated 6% semiannually. The correct answer is (e) $134,400.
I hope this helps! Let me know if you have any other questions.
Hi! I'd be happy to help you with this question. We need to find the value of the home after 5 years with a 6% semiannual appreciation rate.
1. First, determine the number of semiannual periods in 5 years. Since there are two semiannual periods in a year, multiply 5 years by 2: 5 x 2 = 10 semiannual periods.
2. Next, convert the semiannual appreciation rate from a percentage to a decimal by dividing by 100: 6% ÷ 100 = 0.06.
3. Now, add 1 to the appreciation rate: 1 + 0.06 = 1.06. This represents the growth factor.
4. Raise the growth factor to the power of the number of semiannual periods: 1.06^10 ≈ 1.790847697.
5. Finally, multiply the initial home value by the growth factor to find the current value: $100,000 x 1.790847697 ≈ $179,084.77.
The home is worth approximately $179,084.77 today.
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What is marketing process?
In order to research market prospects, select a target consumer, and develop a comprehensive marketing plan to engage with those customers and qualify leads for the sales team, a company must first go through the marketing process.
Marketing is the process of determining, creating, and delivering value in order to meet the needs of a target market for goods and services. Additionally, it could entail selecting a target market, deciding which traits or themes to stress in advertising, executing advertising campaigns, taking part in public events and trade exhibits, and developing products. The marketing is the responsibility of the seller, who is typically a manufacturer or merchant. It is one of the main components of commercial and business administration. Marketers can direct their products at customers or other companies. Regardless of the target audience, a variety of characteristics, such as the marketers' thinking, are critical to the ecosystem in which the product works. The way that marketers approach the marketing planning process depends on their market orientations.
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What is a command economy Mcq?
The command economy include public ownership of major industries, government control of production levels and distribution quotas, and prices, wages, and inventory levels all being under government control.
The government makes key decisions such as which goods to produce and the quantity of each good to be produced. The government also sets and enforces laws, regulations, and directives to ensure the central plan is followed. In a command economy, the government has absolute power over all resources, and businesses must follow the central plan’s production and hiring targets, with no ability to respond to free-market forces. These features are what make a command economy different from a free-market economy.
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What is the difference between a tariff and a quota?
Quota limit the amount of goods imported from other countries. Customs duty is a fee charged on the value of goods imported from another country.
Quotas limit the amount of goods imported from other countries. Customs duty is a fee charged on the value of goods imported from another country.
While tariffs generate income that is paid to the treasury of the importing country, the value of the quota, also called "quota rent," is generally determined by foreign exports who can sell the goods subject to the quota at a higher price and collect more.
Unit revenue passed to the merchant. In both cases, domestic consumers bear the cost of tariffs and quota royalties in the importing country. However, quotas do not generate income for the importing country's government.
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When an improved investment property is sold, the tax rate on depreciation that has been previously deducted is generally
Depreciation expense is a tool used by real estate investors to lower their taxable net income while holding a rental property.The full amount of depreciation claimed is taxed as normal income up to a rate of 25% when the property is sold.
What occurs to depreciation when a rental property is sold? Investment property improvements, such as buildings and other structures, may be depreciated under IRS tax law.However, the IRS will want their money back if you sell your real estate investment after 20 years and it has appreciated in value. In that case, you will be assessed a 25% tax rate on the amount you had previously written off.Depreciation is a cost that real estate investors utilize to lower their taxable net income while they are landlords of a rental property.When the asset is sold, the entire depreciation expense claimed is taxed as normal income up to a 25% rate.An investor's ordinary income tax rate, up to a maximum of 25%, is applied to depreciation recapture.The capital gains rate applies to any remaining profits from the sale of a rental property.To learn more about Depreciation refer
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A group of students is researching nonprofit organizations to partner with for their senior project. They have decided that the most important thing is that the organization helps local children.
What facts about each organization should they include in their research to make sure it matches their goals?
Choose three answers.
□activities
□donor list
□recipients
□mission statement
□founding members
Answer:
□activities
□recipients
□mission statement
Explanation:
"Activities" would give an understanding of what type of services or programs the organization offers and whether they align with the students' goals of helping local children.
"Recipients" would give an understanding of who the organization serves, including whether they are local children.
"Mission statement" would give an understanding of the overall purpose and goals of the organization, including whether helping local children is a priority for the organization.
It's also important for them to research about the financials of the organization, such as their annual reports, if available, to make sure the organization is well-established and has a good reputation, and also to know about their current funding situation.
roblem 3-1A Identifying adjusting entries with explanations LO P1, P2, P3, P4
For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once.
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this period's use of a prepaid expense.
H. To record payment of a prepaid expense.
Problem 3-1 A adjusting entries are discussed below , the letters are used beside each entry to describe the journal entries .
Entry Explanation Journal entries Debit Credit
1 G Insurance expenses 2,400
Prepaid insurance 2,400
2 C Salaries payable 4,800
Cash 4,800
3 H Prepaid rent 3,100
Cash 3,100
4 E Salaries expenses 4,800
Salaries payable 4,800
5 F Interest receivables 1,100
Interest revenue 1,100
6 D Cash 3,200
Account receivable ( from outstanding) 3,200
7 A Cash 5,000
Unearned professional fees 5,000
8 D Cash 4,500
Interest receivables 4,500
9 G Rent expenses 8,100
Prepaid rent 8,100
10 E Interest expenses 7,800
Interest payable 7,800
11 I Depreciation expenses 3,000
Accumulated depreciation 3,000
12 B Unearned professional fees 1,700
Professional fees earned 1,700
What is prepaid insurance?
The term prepaid insurance refers to the advance payment made by an individual or company for insurance benefits or coverage to an insurance company. Premiums are usually paid for one year in advance, but in some cases can take up to 12 months or longer.
What are diary entries?Journal entry is the act of maintaining or recording economic or non-economic transactions. Transactions are recorded in accounting journals that show the company's debit and credit balances. A journal entry can consist of multiple entries, each representing either a debit or a credit.
Question is incomplete, missing part is given below :
Problem 3-1A Identifying adjusting entries with explanations LO P1, P2, P3, P4
For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once.
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this period's use of a prepaid expense.
H. To record payment of a prepaid expense.
Entry Explanation Journal entries Debit Credit
1 Insurance expenses 2,400
Prepaid insurance 2,400
2 Salaries payable 4,800
Cash 4,800
3 Prepaid rent 3,100
Cash 3,100
4 Salaries expenses 4,800
Salaries payable 4,800
5 Interest receivables 1,100
Interest revenue 1,100
6 Cash 3,200
Account receivable ( from outstanding) 3,200
7 A Cash 5,000
Unearned professional fees 5,000
8 Cash 4,500
Interest receivables 4,500
9 Rent expenses 8,100
Prepaid rent 8,100
10 Interest expenses 7,800
Interest payable 7,800
11 Depreciation expenses 3,000
Accumulated depreciation 3,000
12 Unearned professional fees 1,700
Professional fees earned 1,700
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Which of the following best describes the U.S. free enterprise system?a. individual or corporate ownership of capital goodsb. very heavy government regulation of businessesc. government provision of free services to those in needd. free trade with markets open without restriction to foreign goods
The correct answer is desire a "individual or company ownership of capital goods"; The U.S free organisation machine allows men and women or companies to own capital goods because it limits the government's intervention in numerous business operations.
What do persons personal and manage underneath a free employer system?The key ingredient of the free organization system is the right of folks to make their personal preferences in the buy of goods, the selling of their products and their labor, and their partici- pation in enterprise structure.
The U.S. economic system of free business enterprise has five main principles: the freedom for men and women to pick out businesses, the right to personal property, income as an incentive, competition, and purchaser sovereignty.
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https://brainly.com/question/21726130#SPJ4A company plans on expanding its operations and needs the capability to increase and decrease services depending on their customer and workload while minimizing cost increases as often as possible. Which feature is most important for the company?
Fault tolerance
Scalability
Availability
Elasticity
Elasticity is the most important feature for the company.
Elasticity refers to the ability of a system to adjust the amount of resources it uses in response to changes in demand. This is important for the company because it allows them to increase and decrease services as needed, depending on their customer and workload, without incurring significant cost increases. For example, if the company experiences a sudden increase in demand for its services, it can easily scale up to meet that demand, and then scale down again when demand decreases, without incurring large costs associated with over provisioning resources.
Scalability, Availability, and Fault tolerance are all important features but not as crucial as Elasticity in this context. Scalability allows the system to handle an increased workload by adding more resources, Availability ensures that the system is up and running and accessible when needed, and Fault tolerance ensures that the system can continue to function in the event of a failure. All of these are important to maintain a proper service level agreement to the customers, but Elasticity is the key factor that allows the company to adjust the resources they use in response to changes in demand while minimizing costs.
Recognition of revenue from sale of finished goods is:
Multiple Choice
A. An asset use transaction.
B. An asset exchange transaction.
C. An asset source transaction.
D. A claims exchange transaction.
Recognizing revenue from the sale of finished goods is a transaction involving an asset source.
What sort of exchange transaction would this be?A purchase or sale of products or services is an example of an exchange transaction, as is the leasing of real estate, machinery, and equipment at fair market value. 6. The substance of the transaction should be taken into account rather than the transaction's format when deciding between exchange and non-exchange revenues.
What sort of asset source transaction would that be?A transaction that sources assets increases the asset. Bond issuance is one instance. The bonds will debit (raise) cash and credit (increase) liabilities.
In what ways are exchange transactions identified and quantified?According to accrual accounting rules, exchange transaction revenues should be recorded as they are earned and quantified by the rise in cash, receivables, or other assets or the decrease in liabilities as a result of the exchange.
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D was actively serving the marines when he was killed in an automobile accident while on leave. His $100000 whole life policy contains a war exclusion clause. How much will D'a beneficiary receive?
The beneficiary should receive the full death benefit of $100,000 because of Joint Life Policy.
If D's whole life insurance policy contains a war exclusion clause, it means that the policy will not pay out in the event of death resulting from acts of war. Since D was actively serving in the marines when he was killed in an automobile accident while on leave, it sounds like his death was not a result of war, therefore the beneficiary should receive the full death benefit of $100,000. However, it's important to verify the details of the policy and the circumstances of D's death with the insurance company to confirm that the death benefit will be paid out in full.
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How do you calculate tax on a property sale?
Long-term capital gain is calculated as Property tax price minus (transfer cost, indexed purchase cost, and indexed home enhancement cost).
Property tax is an ad-valorem tax levied by the local government and paid by the owner of the property on real estate. It's thought to be a regressive tax. The worth of the assets that a person owns, including land, is typically taken into account when determining taxes. The assessed tax will be used by the local government to pay for any upgrades required to the water and sewer infrastructure, as well as for law enforcement, fire protection, and other services. Reconveyance deeds are unaffected by property taxes. Tax compliance refers to both governmental activities and individual behavior in order to guarantee that taxpayers are paying the appropriate amount of tax at the appropriate time and receiving the appropriate tax allowances and tax reliefs. A tax is a required payment of any kind.
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Debt financing is essentially
Multiple Choice
borrowing money
borrowing ownership
selling money.
the same as stock.
selling ownership
Option a is correct. Debt financing is basically borrowing money from banks and financial institutions to raise funds. In return for the loan, the creditor is obligated to pay interest on the money borrowed.
Leverage occurs when a company sells debt securities to individuals or institutions to raise funds for working capital and capital expenditures. In exchange for lending money, an individual or institution becomes a creditor and receives a promise that the principal and interest of the debt will be repaid.
Another way to raise capital in the bond capital markets is to issue shares in a public offering. This is called equity financing. Debt financing occurs when a company raises money by selling debt securities to investors. Debt financing is the opposite of equity financing, which raises money by issuing shares.
Leverage occurs when a company sells fixed income products such as bonds, notes, and corporate bonds.
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A critical outcome of the supply chain is to deliver
A critical outcome of the supply chain is to deliver b. the right product to the right place.
A supply chain consists of what?The network of all the people, businesses, resources, tasks, activities, and technological advancements involved in the production and distribution of a good is known as a supply chain. A supply chain includes every step of the process, from the transfer of raw materials from the supplier to the producer to the final distribution to the customer.
The supply chain process is what.Delivery of a product from a raw material to a consumer is the process of supply chain management. It comprises demand planning, sales and operations planning, supply management, and supply planning.
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What is the difference between fed funds rate and interest rate?
Federal funds rate is different from interest rate since federal funds rate is determined by the Fed to charge when a commercial banks lend its reserves to other commercial bank. Interest rate is charged by a commercial bank to its borrowers or customers.
Federal funds rate is one of The Fed's tool to manage the money supply in the economy. As a part of the monetary policy, the Fed determined the target rate at which a commercial bank is charged when borrow or lend its excess reserves to other commercial banks.
When the federal funds rate is low, bank will prefer to increase the amount of money to lend and aims to gain more profit from the public lending. However, if the federal funds rate is high, commercial banks will prefer to keep their money on account and gain profit from the higher federal funds rate.
Interest rate refers to the amount of money a borrower has to pay to its lender as a percentage of the principal loan. Interest rate in this case refers to the rate charged by the bank as the lender to its customers as the borrowers.
The federal funds rate will affect the interest rate charged by the bank since it will determined the amount of reserves the bank has to keep.
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What is marketing process Mcq?
The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing.
To address the needs of a target market for goods and services, marketing is the process of deciding on, developing, and providing value. It could also involve picking a target audience, deciding which qualities or themes to emphasize in advertising, putting together advertising campaigns, participating in public events and trade shows, and creating products. The seller, who is often a manufacturer or merchant, is in charge of marketing. It is one of the key elements of business and commercial administration. Marketers may aim their goods at consumers or other businesses. Various traits, including the marketers' way of thinking, are essential to the ecosystem in which the product operates, regardless of the target audience. The method by which marketers approach the process of marketing planning
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Why is it challenging to match your investing decisions with how the stock market is performing?
It is hard to predict trends, and trends can only be identified once they’ve already happened
The stock market is typically in a BEAR market for a specific period of time
You have to invest large amounts of money to have your decisions match the performance of the stock market
The stock market is typically in a BULL market for a specific period of time
It can be difficult to match your investment choices with how the stock market is doing because trends are difficult to forecast and only become apparent after they have already occurred.
Why is predicting trends in the stock market so difficult?It is challenging to predict the market since the future is inherently uncertain. Short-term traders would frequently be better served by waiting for signs that a reversal is likely to happen rather than trying to forecast when it will.
Why is investing such a difficult task?Investments entail some risks. Due to variations in investment return and principle value, shares' value at redemption may be higher or lower than when they were first bought. Success in the future cannot be anticipated solely on past success. There is no guarantee that a strategy will work.
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In your budgeting process, when should you look at recurring expenses?
In your budgeting process, planning for recurring costs should come after considering your wants.
Governments establish and approve budgets through a procedure known as the budget process. Setting expenditure limits for each of an organization's functions is known as budgeting. It is the estimation and distribution of capital resources utilised to meet a firm's set objectives.
Having a budget promotes financial stability. A budget makes it simpler to pay bills on time, accumulate an emergency fund, and save for significant expenses like a car or home by keeping track of spending and according to a plan. Overall, having a budget gives a person a stronger financial foundation for both the short- and long-term.
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Which type of bank is responsible for receiving deposits from customers and lend money as loans to customers entrepreneurs businesses and government?
Commercial banks are institutions of the financial sector that take deposits, provide account security, and grant loans.
Where do banks get the money to fund loans to customers?Banking institutions normally make money by borrowing money from depositors and paying it back with a set interest rate. The banks will lend the money to borrowers by imposing a higher interest rate and earning profit from the interest rate spread.A commercial bank is a particular type of financial institution that takes deposits, offers checking account services, makes business, personal, and mortgage loans, and provides customers with access to basic financial products including certificates of deposit (CDs) and savings accounts.
Therefore, receiving deposits and disbursing loans are a commercial bank's primary responsibilities.
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What are the 3 reasons why stretching and flexibility is important?
There are three good reasons to incorporate stretching into your everyday routine: Your pain is reduced by stretching. Stretching improves your range of motion and flexibility, lowers your stress level, and provides you more energy.
The capacity to change or to be modified quickly depending on the circumstances: This system's versatility is a benefit. The schedule doesn't provide us a lot of leeway. Stretching, yoga, and tai chi are a few examples of flexibility exercises. successfully adjusting to shifting circumstances and settings. Maintaining composure in the face of challenges. Planning ahead while also considering backup plans in case something goes wrong. Thinking rapidly to react to unexpected changes in the environment. perseverance in the face of unforeseen challenges Flexibility in the workplace embraces the notion that workers may be effective regardless of when or where they do their tasks. Office flexibility recognizes individual requirements and fosters a better work-life balance and employee well-being rather than maintaining a rigid workplace atmosphere or schedule.
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What is invested capital used for?
Invested capital is used for purchasing a commodity such as land, industry, real estate etc. through which greater profits can be earned.
Capital refers to the money invested in any economic transaction process which adds value to the product, and can be used to begin or proceed with the manufacturing process. There can be many sources to obtain capital such as banks, angel investors, corporates, stock market etc. Sources can be obtained in various form such as loans, debts, revenue etc. Capital investment helps in day to day operations of businesses. These capitals are considered as assets which are contributed by the shareholders. One must not confuse invested capital with working capital.
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How many types of gametes will be produced in F2 generation of dihybrid cross?
In the F2 generation of hybrid plants crosses, 3 different types of gametes will be produced.
Eukaryotes, the majority of which are photosynthetic, are found in the kingdom Plantae. In the past, the kingdom of plants, which now includes only plants, also included fungus and algae. prokaryotes and both of these taxa are not included in any contemporary classifications of the Plantae. According to one definition, the clade Viridiplantae, which is sister to the Glaucophyta and includes plants, is composed of green algae and Embryophyta. The latter includes conifers, mosses, hornworts, liverworts, ferns, and other gymnosperms. Most plants are composed of many cells. To capture the majority of the energy from the sun through photosynthesis, green plants need primary chloroplasts, which are created as a result of an endosymbiotic connection with cyanobacteria. Because they have chloroplasts with chlorophylls a and, they are green.
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Who was most affected by the stock market crash of 1929?
U.S. labor relations are exceptional because of the:
a. Low levels of support for unionization and legal rights for unions.
b. Growing socialist movement.
c. Management acceptance of unions as part of running a business
d. All of the above.
U.S. labor relations are exceptional because of management acceptance of unions as part of running business.
What is management?Management is the administration of the organization, whether it be a for-profit business, a governmental institution, or a nonprofit. Management includes establishing an organization's plan and organizing its employees' efforts to accomplish its objectives by utilizing its resources, including financial, natural, technological, and human resources. They are in charge of overseeing and controlling every aspect of the company's business operations. Another crucial duty for top-level managers is the mobilization of outside resources. Senior executives have obligations to shareholders, the general public, and the government authorities that oversee businesses and other entities with similar functions. Senior management staff members may speak publicly on behalf of the company, introduce new strategies, or make appearances in marketing.
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Distributive bargaining is characterized by all of the following EXCEPT Multiple Choice Maximizing one's share of resources is the goal Potential for win-win situation exists Resources are fixed and limited Goals of one party are in direct conflict to another party
The correct answer is opposed interest. When a person finds themselves in two social roles at once that provide competing rewards or loyalties, a conflict of interest results.
Similar to distributive bargaining, a side can only win if the other party loses. For the negotiation of fixed resources, this tactic is employed. A win-lose scenario is produced by the distributive bargaining tactic, when one party gains from an argument while the other loses. It functions in a situation when there is a zero-sum advantage for only one party. The main distinction between these two negotiation techniques is that in distributive negotiation, requirements of the opposing party are not taken into account when negotiating an agreement. Your only worry is losing less money than the other side, and your whole attention is on negotiating a better bargain.
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Adam is considering getting his car a new paint job. Doing so will have a total cost of $264. 83. Can adam afford this? a. Yes, he can make the purchase and still have money left over. B. Yes, but doing so will clear out his account. C. No, purchasing that would overdraw his account. D. No, he is overdrawn already.
C. "No, purchasing that would overdraw his account." As $264.83 is a considerable amount of money, and without knowing Adam's financial situation it's impossible to know for sure if he can afford it or not.
Assuming he does not have that amount of money saved in his account, it's likely that purchasing the paint job would cause him to overdraw his account. Here is the way might be help you to manage your financial before you decide to buy something:
Create a budget: Start by listing all of your income and expenses, so you can see where your money is going. This will help you identify areas where you may be able to cut back.Set financial goals: Determine what you want to achieve financially and set specific, measurable goals.Track your spending: Keep track of your spending and stick to your budget as much as possible. Use tools like a spending tracker app or a spreadsheet to help you stay on top of your expenses.Save for emergencies: It's important to have an emergency fund to cover unexpected expenses. A good rule of thumb is to have at least three to six months' worth of living expenses saved.Learn more about financial management, here https://brainly.com/question/29221850
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Answer:
The answer would be B. Yes, but doing so will clear out his account.
Explanation:
When you take the amount that Adam started with, $1213.69 and then subtract all of the expenses he made, you are left with $264.83 exactly.
6 rights of merchandising
What is the best safest investment?
Your confidence in hazardous investments like stocks may be shaken by unpredictable markets. When volatility occurs, many investors transfer their funds into secure investments.
The safest form of account for your money is a high-yield savings account. These bank accounts are very liquid and immune to market volatility since they are insured by the Federal Deposit Insurance Corporation (FDIC). Just keep in mind that your money can become less valuable if inflation is higher than your annual percentage yield (APY).
Deposit account interest rates are now low across the board and are expected to remain so for some time. But you can make minimal income, Certificates of deposit (CDs) are a suitable option if you don't require fast access to your money but would like to earn a little more than a savings account, according to Kevin Matthews, a former financial advisor and the creator of the investing information website Building Bread. Additionally, CDs benefit from the same levels of FDIC insurance as other forms of bank accounts.
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In Exercises 23-26, determine the value(s) of h such that the matrix is the augmented matrix of a consistent linear system.
[tex]\left[\begin{array}{ccc}1&h&4\\3&6&8\\\end{array}\right][/tex] [tex]\left[\begin{array}{ccc}0&3h-6&4\\3&6&8\\\end{array}\right][/tex]
The value(s) of h that cause the matrix to be the augmented matrix of a consistent linear system should be determined.
For what value of the matrix of augmentation is consistent?If the pivot of the augmented matrix A|b is in the last column, the system Ax=b is inconsistent. That is as a result of receiving an equation of the form 0x=1. The last column cannot serve as a pivot in your case's reduced form of the augmented matrix. Ax=b holds true for all values of h, thus.
R1 ← 3R1 - R2
When 3h - 6=0, the system has no solution (is inconsistent), as 0=4 3h -6 = 0 and 3h = 6 h=2. Specifically, the system is consistent for all h values other than 2 and has no solution when h = 2. i.e., when the system is consistent at h = 2.
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What are the 3 principle of personal finance?
The 3 principle of personal finance are Spend less than you earn. Make the money you have work for you. Be prepared for the unexpected.
Personal finance is the term used to describe all financial choices and actions made by a person or household, such as making a budget, getting insurance, getting a mortgage, saving money, and investing. You may better manage your money and get ready for future financial success by comprehending these phrases.
Personal finance types include Income, saving, spending, investing, and protection are the five pillars of personal finance. Personal finance is an essential component of managing your current financial demands as well as future financial planning.
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Collection of a $1,500 Accounts Receivable
Select one:
a. decreases a liability $1,500; increases owner's equity $1,500.
b. increases an asset $1,500; decreases a liability $1,500.
c. increases an asset $1,500; decreases an asset $1,500.
d. decreases an asset $1,500; decreases a liability $1,500
Option (b), Receivables collection results in an asset rise of $1,500 and an asset drop of $1,500.
Does the collection of receivables result in an increase in assets?No, when accounts receivable are collected, the asset quantity does not increase. Cash is obtained via the collection of accounts receivable. As a result, cash is growing and accounts receivable are decreasing. The total value of assets will remain unchanged because cash and accounts receivable both qualify as assets.
What outcome does the collection of receivables produce?The results for the balance sheet of the corporation are an increase in current assets and an increase in owner's or stockholders' equity. The income statement of the organization will also display the amount of revenues earned.
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