for each of the situations, please determine whether the futures price of the commodity listed will increase or decrease. bolivia is an important producer for much of the world's lithium. lithium is an important component in the production of lithium batteries, commonly used in many cell phones and laptop computers. if political tensions in bolivia decrease and larger supplies of lithium are expected to be released, the price of lithium futures will likely

Answer: False

Explanation:

I just answered this question and got it right

An entry for Scents, Inc. that records a $1,000 loan to an employee contains:

The entry to record the loan of $1,000 to Scents, Inc.'s employee would actually be:

This entry reflects that Scents, Inc. is loaning money to its employee and therefore has an asset in the form of a loan receivable. The cash account is credited because cash is leaving the company's account to be loaned to the employee.

The entry would be recorded on the balance sheet because the loan receivable represents an asset that Scents, Inc. expects to receive payment for in the future. The loan payable account would only be used if Scents, Inc. was the one borrowing money from an outside party.

Here to learn more about debit and credit at the link

https://brainly.com/question/28390335

#SPJ11

The statement "the importing of foreign goods by u.s. firms is called foreign direct investment." is True because  the  Foreign direct investment (FDI) is when U.S. firms import goods from foreign countries.

This involves the direct investment of capital from a U.S. firm into a foreign business, with the goal of increasing the U.S. firm's presence in the global market. FDI may involve buying stocks or assets, opening a new business, or merging with an existing foreign business.

In any case, it gives the U.S. firm access to foreign markets, resources, and technologies, helping them compete in a global economy. FDI can also increase economic growth in both the U.S. and foreign countries, creating jobs and driving up wages in both countries.

To know more about  Foreign direct investment click on below link:

https://brainly.com/question/27540611#

#SPJ11

Approximately 21% increase is the percentage change in the price of this bond if the interest rates decrease by 2%. So the option C is correct.

Face value = 1000

Coupon rate is 7%.

Coupon Amount = Face Value × Coupon Rate

Coupon Amount = 1000 × 7%

Coupon Amount = 1000 × 7/100

Coupon Amount = 70

Years to Maturity(n) = 20

Required Return (i) = 10%

Bond price formula = Coupon amount × (1 - (1/(1+i)ⁿ)/i + face value/(1+i)ⁿ

Bond price formula = 70 × (1 - (1/(1 + 10%)²⁰))/10% + 1000/(1 + 10%)²⁰

Bond price formula = 70 × (1 - (1/(1 + 0.10)²⁰))/0.10% + 1000/(1 + 0.10)²⁰

Bond price formula = 744.5930884

When interest rate down by 2%, new required return (i) = 10% - 2%

When interest rate down by 2%, new required return (i) = 8%

Bond price formula = Coupon amount × (1 - (1/(1+i)^n)/i + face value/(1+i)^n

New bond price = 70 × (1-(1/(1 + 8%)²⁰))/8% + 1000/(1 + 8%)²⁰

New bond price = 901.8185259

Change in bond price % = (New price - last price)/last price

Change in bond price % = (901.8185259 - 744.5930884)/744.5930884

Change in bond price % = 0.2111561871

Change in bond price % =  21.11%(approx)

So, there will be approximately 21% increase.

So the option C is correct.

To learn more about interest rates link is here

brainly.com/question/13324776

#SPJ4

The complete question is:

A 20-year bond has a 7.0% coupon rate and face value of $1000. The required return is 10%. What is the percentage change in the price of this bond if the interest rates decrease by 2%? Assume the bond makes semi-annual coupon payments.

A. Approximately 31% increase

B. Approximately 31% decrease

C. Approximately 21% increase

D. Approximately 21% decrease

E. Approximately 2% increase

Each resident's consumption function in the very small economy, with y being disposable income, is:

To find the resident's consumption function, you need to find their Marginal Propensity to Consume by the formula:

= Change in consumption / Change in income

For Andre this is:

= 14, 000 / 20, 000

= 0. 70

The consumption function is then c = 1000 + 0.70y.

For Barbara this is:

= 10, 000 / 20, 000

= 0. 5

The consumption function is then c = 2,500 + 0.60 y.

For Casey:

= 18, 000 / 20, 000

= 0. 9

The consumption function is then c = 2000 + 0.90 y.

For Declan :

= 12, 000 / 20, 000

= 0. 6

The consumption function is then c = 5000 + 0.60 y.

For Elena :

= 15, 000 / 20, 000

= 0. 75

The consumption function is then  c = 4000 + 0.75y.

Find out more on consumption functions at https://brainly.com/question/14975005

#SPJ1

Zereth is looking for ways to increase foot traffic into her brick-and-mortar locations. She has decided to open up a small coffee shop with free wi-fi in her store. This is an example of a marketing decision.

By opening up a coffee shop and providing free Wi-Fi, Zereth is utilizing the concept of 'retail therapy' in order to draw customers to her store. This concept involves creating a pleasant environment where customers can relax, socialize, and enjoy themselves while shopping. By providing a coffee shop with free Wi-Fi, customers will be able to enjoy a beverage and browse the internet while still being in the store. This helps create an inviting atmosphere and encourages customers to stay in the store longer and potentially buy more items.

Additionally, this decision allows Zereth to take advantage of the power of word-of-mouth advertising. By providing a pleasant atmosphere in her store, customers may spread the word to their friends and family, leading to increased foot traffic.

Finally, Zereth can also use her coffee shop to advertise her products and services. She can use the shop to host special events or promotions that encourage customers to visit the store. She can also use the shop to display items, advertise upcoming sales, and inform customers about new products.

Overall, by opening up a coffee shop with free Wi-Fi in her store, Zereth is making a smart marketing decision that will help her draw customers to her brick-and-mortar locations.

For more such questions on Marketing decision.

https://brainly.com/question/12309856#

#SPJ11

a. The government agrees to buy 50 million tons of corn at $ 350 per ton. b. The U.S. government provides $17.5 billion in subsidy. c. The price support in this example is inefficient. d. The subsidy is unfair.

a. In this example, the government agrees to buy 50 million tons of corn at a price of $350 per ton. This is because domestic buyers only demand 450 million tons at this price, while the farmers produce 500 million tons, creating a surplus of 50 million tons.

b. The U.S. government provides a total subsidy of $17.5 billion to the corn farmers. This is calculated by multiplying the surplus (50 million tons) by the price support ($350 per ton).

c. The price support in this example is inefficient. This is because it leads to overproduction of corn (500 million tons produced, but only 450 million tons demanded), resulting in a misallocation of resources. The government must spend money to purchase the surplus, which could have been used for other purposes.

d. The fairness of the subsidy is subjective, but some may argue that it is unfair. The subsidy benefits corn farmers by guaranteeing a higher price for their product, but it also leads to inefficiencies and higher costs for taxpayers. Additionally, the higher price of corn may negatively impact consumers, particularly those with lower incomes, who might struggle to afford the higher-priced corn products.

Note: The question is incomplete. The complete question probably is: Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no price support, the equilibrium price for corn is $300 per ton and the equilibrium quantity is 500 million tons per year. Suppose that the government agrees to pay farmers $350 for every ton of corn they produce and can't sell in the market. According to the farmer's market supply curve, 600 million tons per year is supplied at the price of $350 a ton, so production should increase to this amount. However, domestic users of corn cut back their purchases. Only 450 million tons a year is demanded at the price of $350 a ton, and purchases decrease to this amount. Farmers continue to produce 500 million tons of corn per year, so because they produce a greater quantity of corn than domestic buyers are willing to purchase, something must be done with the surplus. To make the price support work, the government decides to buy the surplus. a. In this example, how many million tons does the government agree to buy? At what price? b. How much in total does the U.S. government provide in subsidy to the corn farmers? Why? c. Is the price support in this example efficient or inefficient? Explain your reasoning. d. Is the subsidy fair? Explain your reasoning.

Learn more about Subsidy:

https://brainly.com/question/6945210

#SPJ11

Tangible resources have physical attributes and are visible.

Tangible resources are physical resources that can be touched, felt, and seen. Land, buildings, machinery, and equipment are all examples of tangible assets. They are seen as easily quantifiable assets in accounting and are essential to many companies' operations. They have physical attributes and are visible. Tangible resources are items that may be seen, touched, or held in the context of business. As opposed to intangible assets, which include things like patents and trademarks, tangible resources are physical assets that a company can acquire and own.

Tangible resources have a monetary worth, such as plant and equipment, and can be utilized in the manufacturing of goods and services. The term "physical assets" is sometimes used to describe them.Tangible resources are physical resources that can be touched, felt, and seen. Land, buildings, machinery, and equipment are all examples of tangible assets. They are seen as easily quantifiable assets in accounting and are essential to many companies' operations.

Learn more about Tangible resources here: https://brainly.com/question/16724696

#SPJ11

The new selling price of merchandise that is currently selling for $10 after being marked up by 40% would be $14.00.

A markup is a percentage of the selling price that is added to the cost of a product to determine its selling price. The markup is usually greater than the actual cost of a product, allowing businesses to make a profit.

The markup formula is as follows: Selling price = Cost + (Markup percentage × Cost)

In this case, the current selling price of the merchandise is $10, and it has been marked up by 40%. As a result, we must compute the new selling price.

New selling price = Current selling price + (Markup percentage × Current selling price) = $10 + (40% × $10) = $10 + $4 = $14

Learn more about markup here: https://brainly.com/question/28945726

#SPJ11

The statement "when followers have a say in the selection or election of a leader, they are likely to have low expectations and make few demands." if false because followers have a say in the selection or election of a leader, they are likely to have higher expectations and make more demands.

The reason for this is that when people are actively involved in the process of choosing their leader, they are more likely to be invested in the outcome and have higher expectations for the person they selected.

This is because they believe their choice should reflect their values and needs, and therefore, they want the leader to deliver on those expectations.

As a result, followers are more likely to make demands and hold the leader accountable for their actions and decisions, as they feel a sense of responsibility and ownership over the leader's performance.

Involvement in the selection process creates a sense of empowerment and raises the stakes for the followers, leading to increased expectations and demands.

To know more about election click on below link:

https://brainly.com/question/11185151#

#SPJ11

The fact that you see a Starbucks on practically every corner would indicate that Starbucks is most likely geographically segmenting based on the location of their target market or customers.

Starbucks is one of the world's leading coffeehouse chains that is based in the United States.

It has over 30,000 locations worldwide and is known for its high-quality coffee, delicious pastries, and cozy atmosphere. Starbucks has a widespread presence, and one can find Starbucks stores on every corner in big cities.

This wide availability of Starbucks stores is due to the company's geographical segmentation.

Geographical segmentation is the process of dividing a broad market into different geographical areas or regions. Starbucks uses this segmentation strategy to target customers in specific regions or areas.

Starbucks is most likely geographically segmenting based on the location of their target market or customers.

By doing so, Starbucks can increase its sales and brand recognition by reaching out to people who are likely to buy their products.

Starbucks stores are strategically located in high-traffic areas such as shopping malls, airports, universities, and hospitals.

This way, the company can cater to its target customers, who are usually busy people, and offer them the convenience of grabbing a cup of coffee on the go.

Starbucks has also been expanding its reach to other countries worldwide, with the same geographical segmentation approach.

To know more about geographically segmenting refer here:

https://brainly.com/question/29306227#

#SPJ11

Yes, a forecast with a time horizon of about 3 months to 3 years is typically called a long-range forecast.

Forecasting is the process of predicting the future based on previous data and analysis. Time horizon, which is the period of time for which a forecast is made, is the most important factor in forecasting. On the basis of time horizon, forecasting is classified into three types: short-range forecasting, medium-range forecasting, and long-range forecasting.

A short-range forecast, which is often known as an operational forecast, has a time horizon of one day to a week. It's typically used for scheduling work, assigning personnel, and scheduling material deliveries. A medium-range forecast has a time horizon of one week to six months. It's used for sales and production planning, budgeting, and cash flow projections. A long-range forecast has a time horizon of about 3 months to 3 years. It's used for long-term strategic planning, such as investment planning and facility expansion.

To know more about forecasting click on below link :

https://brainly.com/question/30167588

#SPJ11

The factor represents one of the sources of value derived from network effects "staying power" represents one of the sources of value derived from network effects. The correct option is D.

The network effects refer to the phenomenon where the value of a product or service increases as more people use it. Staying power is a factor that contributes to the value derived from network effects because it refers to the ability of a product or service to retain its users over time.

The reason of  staying power as more people use a product or service, it becomes more valuable to each individual user, and this increased value makes it more likely that they will continue to use it, which further reinforces the network effects. In other words, the more people who use a product or service, the more likely it is to remain popular and valuable over time, which contributes to its staying power.

Therefore, the correct answer will be option (D)

To know more about network effects here,

https://brainly.com/question/30456110

#SPJ4

False. A business analyst is often required to identify how the system will provide business value when compared to a systems analyst.  The business analyst is responsible for identifying how the system will provide business value, whereas the systems analyst focuses on designing the technical components of the system.

A business analyst is a professional who analyzes business operations, processes, and systems in order to identify problems and opportunities for improvement. They work closely with stakeholders and subject matter experts to gather and analyze requirements, and then use this information to design solutions that meet the needs of the organization. Business analysts may also be involved in testing, training, and implementation of new systems or processes.

Learn more about Business analysts: brainly.com/question/29025695

#SPJ11

If the needed return is 7% and the aforementioned growth rate, the value of Walmart stock per share is 42.60.

Three benefits of preferred shares account for the term "preferred": Dividends are paid to preferred investors first (with precedence given to them over common stockholders). With low interest rates, preferred shares offer a more attractive dividend yield than common stock or bondholders typically do. What doesn't a preferred stock feature have?

As a result, ownership is the feature that does not distinguish preferred stock from common stock. Thus, it is the right response.

P0 = D0 / (r-g)

D0 given in statement as 2.12

D1 = 2.12*(1+.0193) = 2.16

= 2.16 / (.07-.0193)

42.60

To know more about Walmart stock visit:-

https://brainly.com/question/18497867

#SPJ1

When Panchali realizes that she is not getting enough customers because there are several other similar seamstresses in the area, the threat her business is facing is narrow market niche.

A narrow market niche refers to a small market segment that is not well-served. It is also referred to as a niche market, which is a focused and targetable part of a larger market in which consumers have specific needs, desires, or preferences.

Niche markets are becoming increasingly popular, with consumers increasingly turning to more personalized, unique products, and services. They are more likely to be served by small businesses with a narrow focus because larger companies tend to focus on broader markets.

In conclusion, Panchali's business faces the threat of a narrow market niche.

To know more about narrow market niche, refer here:

https://brainly.com/question/29368176#

#SPJ11

If Makum Company is using variable costing, the items that you would see on its income statement include:

Variable costing is a costing method in which only variable manufacturing costs are included in the cost of goods sold, while fixed manufacturing costs are treated as period expenses and are not included in the cost of goods sold.

If Makum Company is using variable costing, the income statement will show the contribution margin, which is the amount by which sales revenue exceeds variable costs. It will also show variable expenses, which include variable manufacturing costs and variable selling and administrative expenses.

Find out more on variable costing at https://brainly.com/question/6337340

#SPJ1

Northeast Foodbank Corp. works in cooperation with three local grocery stores and a meat market to supply food to underprivileged families. Grocery stores and meat markets are examples of retailers.

What is a retailer?

A retailer is an individual or company that sells goods directly to the end consumer. Retailers play a vital role in the supply chain by bridging the gap between manufacturers and consumers. Retailers buy goods in bulk from producers or wholesalers, store them, and then sell them to customers for profit.

The following are some characteristics of retailers:

Retailers' main objective is to profit by providing customers with products that meet their needs. In the case of Northeast Foodbank Corp., retailers provide food to underprivileged families in need.

To know more about retailers refer here :

https://brainly.com/question/29509602#

#SPJ11

For the purposes for which they are used, money market securities should have low trading costs.

The correct answer is i. low trading costs.

Money market securities are short-term, low-risk investments. In the money market, securities with a maturity of less than one year are traded. As a result, securities with a maturity greater than one year should not be included. Money market securities' primary goal is to provide liquidity to financial markets, as well as to provide investors with a secure place to park their money.

The characteristics that a money market security should have are as follows:1. Little price risk: Money market securities should have very little price risk. This means that they are not vulnerable to significant fluctuations in value, which ensures that investors' principal is preserved.

2. Low trading costs: Money market securities should have low trading costs. This allows investors to enter and exit positions with a minimum of expense.3. Life greater than one year: Securities with a maturity greater than one year should not be included in the money market.4. High rate of return: Money market securities are low-risk investments, which means that they provide lower returns than other types of securities. Investors who are looking for higher returns should look for other types of investments outside of the money market.

Know more about market securities here

https://brainly.com/question/30024697#

#SPJ11

Market failure occurs when market forces lead to an inefficient outcome

Market forces are the factors that affect the behavior of buyers and sellers in the market. They include supply and demand, competition, government regulations, and other economic factors.

Market failure is a situation in which the allocation of resources in the market is not efficient and leads to a suboptimal outcome.  

Learn more about market failure here:

https://brainly.com/question/31066300

#SPJ11

The shift in focus of Ikea towards effectively managing a global supply chain in order to achieve economies of scale reflects a change in the company's operations since expanding internationally. This reflects the company's attempt to optimize its operations and increase efficiency.

It also represents a shift in strategy as Ikea attempts to leverage its global reach and expand its operations in new markets. How does Ikea shift its focus?

Ikea shifted its focus towards effectively managing a global supply chain in order to achieve economies of scale. This reflects the company's attempt to optimize its operations and increase efficiency. Ikea has been successful in managing its global supply chain by leveraging economies of scale and achieving cost savings. By doing so, the company has been able to expand its operations and increase its market share in new markets.

In addition, the company has also been able to maintain its commitment to sustainability, which has become an increasingly important issue for consumers in recent years. Ikea has been able to achieve this by adopting innovative approaches to supply chain management, such as using renewable energy sources and developing more sustainable products.

To know more about efficiency refer here :

https://brainly.com/question/14502027#

#SPJ11

Ann can get a mortgage of up to $330,859 if she is willing to spend $1,500 per month on her mortgage payment.

This is based on a fully amortizing 30 year fixed rate mortgage with monthly payments at 4.38%.

To calculate the mortgage amount, you can use the following formula:
[tex]M = P [(r(1+r)^n)/((1+r)^n^ -^1)][/tex]

Where:
M = Monthly Mortgage Payment
P = Principal (Mortgage amount)
r = Interest rate
n = Number of payments (30 years in this case)

Plugging in the values, you get:
M =[tex]1500 [(0.0438(1+0.0438)^3^6^0)/((1+0.0438)^3^6^0^ -^1)][/tex]
M = 330,859

Therefore, Ann can get a mortgage of up to $330,859 if she is willing to spend $1,500 per month on her mortgage payment.

To know more about mortgage refer to:

https://brainly.com/question/29616645

#SPJ11

Examples of annuities include mortgages, pension plan payouts, savings plans, and layaway purchases, but not a one-time payment in full. Thus, Option D is correct.

An annuity is a financial product that involves a series of regular payments made over a specific period. Examples of annuities include mortgages, where a borrower makes regular payments to a lender over a set period to repay the loan. Pension plan payouts are also annuities, where retirees receive regular payments from their pension fund.

Savings plans, such as retirement annuities, are also annuities, where individuals contribute a certain amount of money to an investment account that pays out regular payments in the future. Layaway purchases, where a consumer pays for a product in installments over time, are also annuities. However, a one-time payment in full is not an annuity, as it does not involve a series of regular payments over time.

Learn more about annuities https://brainly.com/question/29311342

#SPJ11

The status of the contract between Mr. Green and Mr. Blue is that there is no contract because Mr. Green gave inadequate consideration, as he used coercion to obtain payment from Mr. Blue.

A contract requires an offer, acceptance, and consideration. In this scenario, there was an offer (not to burn Mr. Blue's business down), and acceptance (by Mr. Blue paying $100). However, the consideration provided by Mr. Green was inadequate because it was obtained through coercion (threatening to burn Mr. Blue's business down).

Therefore, there was no valid contract between Mr. Green and Mr. Blue. Coercion, or the use of threats, to obtain payment or other benefits, is illegal and can result in criminal charges.

Learn more about valid contract https://brainly.com/question/28121330

#SPJ11

In Novak's 2024 net cash provided by operations, the amount of cash disbursements for insurance would be reported.

Cash disbursements refer to the payments made by a company during a specific time period. These disbursements are generally made for a variety of purposes, including salaries, rent, utilities, taxes, and inventory purchases. Cash disbursements can be used to measure a company's liquidity, as they provide a clear indication of how much cash is flowing out of the company.The net cash provided by operations for a specific period of time refers to the cash inflows and outflows generated by the company's primary operations. It is calculated by subtracting cash disbursements from cash receipts. As a result, in Novak's 2024 net cash provided by operations, the amount of cash disbursements for insurance would be reported.

To know more about cash disbursements click on below link :

https://brainly.com/question/24195927#

#SPJ11

GM is attempting to acquire the technology for autonomous driving software for their cars when they purchase a company that has developed it. This technology will help GM's cars become autonomous and increase their competitiveness in the market.

Why do companies buy other companies?

Companies can buy other companies for many reasons, including increasing their market share, entering new markets, acquiring new resources and capabilities, and reducing competition, among other reasons. Companies can also purchase a company in order to leverage its existing expertise or gain access to new capabilities.

In summary, GM's attempt to purchase a company that has developed autonomous driving software for cars is to acquire a new autonomous driving software for cars. Companies buy other companies to gain access to new resources and capabilities, enter new markets, and reduce competition.

When GM purchases a company that has developed autonomous driving software for cars, GM is attempting to acquire autonomous driving software. GM is trying to acquire new autonomous driving software for cars when it buys a company that has developed one. Companies can buy a company to acquire its resources or increase its market share.

Learn more about the market here:-

https://brainly.com/question/25369230

#SPJ11

Business case analysis, which is part of the fourth stage in the product development process, is an important part of the development process because it allows organizations to evaluate the feasibility and potential success of a project or product.

This analysis considers the total cost of the project or product, the potential risks involved, the expected return on investment, and any potential legal or regulatory considerations. Through this analysis, organizations can make informed decisions on whether or not a project should move forward.

In order to complete a thorough business case analysis, organizations must evaluate the costs associated with the project, including any potential start-up costs, operational costs, and long-term costs

. They must also consider the expected return on the investment, which can include any potential benefits that can be gained from the product or project, such as increased sales, cost savings, or market share.

Organizations must also consider any potential risks associated with the project, such as changes in technology or customer preferences, and the legal or regulatory implications of the product or project.

Overall, business case analysis is an important part of the product development process because it allows organizations to make informed decisions on whether or not a product or project is worth pursuing. By evaluating the costs, benefits, and risks associated with the project, organizations can determine whether or not the project is worth the time and resources invested in it.  

To learn more about organizations here:

https://brainly.com/question/19334871#

#SPJ11

The Physical Distribution concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level. So, the correct option is D.

Physical Distribution can be defined as the activities of planning, executing, and controlling the physical flow of goods, services, and related information from the point of production to the point of consumption to meet the customer's requirements profitably.

This concept is essential in the overall business and channel system as it ensures that all transporting, storing, and product-handling activities of a business are taken into consideration and viewed as part of one system. This system should aim to minimize the cost of distribution for a given customer service level. A lot of companies depend on physical distribution for their success.

It includes a range of activities such as packaging, warehousing, transportation, order processing, and inventory management. The goal is to get the product to the consumer when they need it, where they need it, and how they want it. Hence, Physical Distribution becomes very significant.

You can learn more about customer service at: brainly.com/question/28417930

#SPJ11

The innovation being exemplified in this scenario is disruptive innovation.

Disruptive innovation is the innovation that produces products or services with less quality and performance than existing products or services but has other characteristics that attract customers. It is a type of innovation that creates new markets with new value networks and eventually displaces established market leaders and alliances happened in the scenario is that the automobile manufacturer created high-performance products that were new in the market.

Customers were willing to pay a high price for the product since it offered unique features. However, after some time, other brands offered the same features at a lower price, which led the innovators to reduce the price as well. In this way, these other brands disrupted the initial innovation of the automobile manufacturer by offering similar products at a lower price that attracted customers away from the high-performance products with a higher price tag. Therefore, disruptive innovation is being exemplified in this scenario.

To know more about Disruptive innovation click on below link:

https://brainly.com/question/15100569#

#SPJ11

The effect on the accounting equation if a company uses $1,370 of its cash to purchase supplies would be that the assets would decrease by $1,370 and the equity of the company would not change.

ExplanationThe accounting equation is an essential element of the financial accounting system, and it expresses the relationship between assets, liabilities, and equity of a company. The accounting equation is as follows:Assets = Liabilities + EquityIn this equation, the assets of a company are what it owns or controls. They include cash, property, and inventory.Liabilities are what the company owes to creditors or others. They include loans, accounts payable, and taxes payable.Equity refers to the value of what the company owns after all liabilities are subtracted from the assets.

The purchase of supplies by the company is considered an expense, which is a cost of doing business. The purchase of supplies will cause the company's cash balance to decrease by $1,370. Since cash is an asset account, this transaction will result in a decrease in the assets of the company by $1,370. The purchase of supplies does not affect the company's equity. The decrease in assets must be offset by a corresponding decrease in liabilities or equity in accordance with the accounting equation.

Therefore, the accounting equation will remain in balance as the decrease in assets is offset by a corresponding decrease in cash.

For more such questions on accounting equation

https://brainly.com/question/10436567

#SPJ11