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What transaction would increase a liability and decrease equity?
A transaction that would increase a liability and decrease equity is when a company takes out a loan. The loan amount increases the liabilities on the balance sheet, reflecting the obligation to repay the borrowed funds. Simultaneously, if the loan proceeds are used to purchase an asset that does not generate immediate revenue, it can lead to a decrease in equity due to interest expenses or other costs associated with the loan affecting retained earnings.
Does Revenue will always increase cash its true or false?
False. While revenue represents the total income generated from sales, it does not directly equate to cash flow. Factors such as credit sales, delayed payments, and operational expenses can lead to situations where revenue increases but cash flow remains tight or even negative. Thus, a business can report high revenue while struggling with liquidity.
In a perfectly competitive market an increase in demand will in the long run generally cause?
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
How do brands help buyers and sellers?
1)it can lead to increase revenue of the company2)it increase buyer awareness about the product in the good3)security of the good of particular company4)advertisement of good in the market
What would always lead to an increase in the average kinetic energy of a gas?
Heating it.
How does the increase in native English teachers' salaries lead to an increase in the private school fee?
In private schools the main focus is given to english language which includes english speaking. Thus an increase in english teacher's salary will increase the overall total cost of the school to provide their service which wil reduce the revenue of the school. To maintain the earlier level of revenue, prices will go up, in this case, school's fee will go up.
Would a drug company increase its revenue by putting prescription drugs on sale?
Yes, it most likely would, but it would lead to an increase in lawsuits against the company and certain prescription drugs cannot be sold without a prescription, hence the name.
What is the effect of an increase in activity on the following items?
An increase in activity typically leads to higher demand for resources, which can result in increased production levels and potentially higher revenue. This heightened activity may also lead to greater operational costs, including labor and materials. Additionally, if managed effectively, the increase in activity can improve economies of scale, ultimately enhancing profitability. However, if the increase is not sustainable, it could lead to resource depletion or operational strain.
What causes the EPS to decrease?
Factors that can cause EPS (Earnings Per Share) to decrease include a decrease in net income, an increase in the number of shares outstanding, or dilution from the issuance of new shares or convertible securities. A decrease in revenue or an increase in expenses can also lead to a decrease in EPS.
An increase in the price of product a will?
An increase in the price of product A will typically lead to a decrease in the quantity demanded by consumers, as higher prices may make the product less affordable or attractive. This phenomenon is known as the law of demand. However, if product A is a necessity or has few substitutes, the decrease in demand may be less pronounced. Additionally, the increase in price could potentially lead to higher revenue for producers, depending on the price elasticity of demand for that product.
What factor among the following would lead to an increase in the momentum of a photon?
The factor that would lead to an increase in the momentum of a photon is an increase in its frequency.
Does milk consumption lead to an increase in body temperature?
No, milk consumption does not lead to an increase in body temperature.
