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1. Darryl purchased a new laptop on January 1, 2010 worth $2,000. He paid the entire amount using cash....

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1. Darryl purchased a new laptop on January 1, 2010 worth $2,000. He paid the entire amount using cash. 2. He also purchased a new cell phone worth $300 and an mp3 player worth $100 on account(using his credit card). How will these transactions affect Darryl's net Worth? Assets = Liabilities + Net Worth 1. Darryl used his cash to purchase the laptop. Both are Assets; therefore, if he used one asset to purchase another, has his Net Worth changed? 2. Darryl then purchased a new cell phone and mp3 player using his credit card. The cell phone is an Asset. Darryl now owes a Liability for this purchase. Has his Net Worth changed?

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Answer rating: 100% (QA)

Answer Net worth will remain unaffected E View the full answer


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Related Book For  answer-question
Financial Reporting and Analysis

Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Posted Date: September 18, 2020 17:00:15
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