Assets: Defined as the economic resources which are owned by a business and are expected to benefit future operations.
What is your asset? read more on:
Assets as the first element of accounting equation.
Classification of Assets
Current Assets: This includes cash and other assets which can easily be converted into cash, sold, or consumed during normal business operation.
Plant or fixed assets: a non-current asset that is more or less permanent in nature, not for sale and exclusively for business use only and has physical existence.
Current Asset Accounts Include:
1.Cash
2.Accounts Receivable
3.Inventory
4.Notes receivable
5.Interests receivable
6.Allowance for bad debts
7.Merchandise Inventory
8.Prepaid Expenses
9.Supplies on hand
Fixed Asset Accounts Include:
1.Land
2.Building
3.Equipment
4.Delivery Equipment
5.Accumulated depreciation
6.Tools
a. Asset- Land is an asset, it is considered as fixed asset because land is invested for long-term use and it cannot be converted to quickly into cash.
Assets: Defined as the economic resources which are owned by a business and are expected to benefit future operations.
Assets: the first element of accounting equation.
Classification of Assets
Current Assets: This includes cash and other assets which can easily be converted into cash, sold, or consumed during normal business operation.
Plant or fixed assets: a non-current asset that is more or less permanent in nature, not for sale and exclusively for business use only and has physical existence.
Current Asset Accounts Include:
1.Cash
2.Accounts Receivable
3.Inventory
4.Notes receivable
5.Interests receivable
6.Allowance for bad debts
7.Merchandise Inventory
8.Prepaid Expenses
9.Supplies on hand
Fixed Asset Accounts Include:
1.Land
2.Building
3.Equipment
4.Delivery Equipment
5.Accumulated depreciation
6.Tools
Answer: a
Why Account receivable is an asset?
Because this is an amount owed to a seller by a customer.This is current asset because it can be easily converted into cash on time.
What is the difference between account receivable and account payable. read more on:
The correct answer among the four given choices is letter b. Notes payable is classified as a liability. This can fall under current liabilities if the note is to be payable within the normal operating cycle of the business which is within 1 year. However, notes payable will be classified under non-current liabilities if this will be paid in a long term period or more than 1 year.
LIABILITY
In accounting, liability is the payables, debts or obligations of a business to settle for another company or entity. Liabilities have two main categories:
1. Current Liabilities
-these are payables or debts which are short-term payables that needs to be paid or settled by the business within a year or in the normal operating cycle of the business.
Some Examples of Current Liabilities
Accounts Payable
Interest Payable
Income Tax Payable
Accrued Expenses
Short-term loans
2. Non-Current Liabilities
-these are payables or obligations that are long-term liabilities that can be settle after a year or more than a year.
Some Examples of Non-Current Liabilities
Bonds Payable
Long-term Notes Payable
Deferred Tax Liabilities
Mortgage Payable
The correct answer among the listed choices is letter a. Prepaid expenses normally falls under the category of current assets since these are prepayments that will be generally used up within a year.
ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:
Current AssetsNon-current Assets1. Current Assets
-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.
Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. These are not easily convertible to cash.
Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwillOther Assets
All fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
The correct answer amont the given choices is letter b. Unearned Revenue is money already received from the customer or client for service or product that has yet to perform or deliver. In accounting initial entry, cash is normally debited and unearned revenue is credited since it is a liability that the business need to provide yet a service or product. Unearned Revenue will be reverse once the service or product is already done or delivered to the customer.
LIABILITy
In accounting, liability is the payables, debts or obligations of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:
1. Current Liabilities
-these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.
Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities
-these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.
Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage Payable
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
Prepaid expense is categorized as an asset because what you bought is not yet used by the company and can only be used on the following months or years. A good example of this is the prepaid rent.
Assets: Defined as the economic resources which are owned by a business and are expected to benefit future operations.
What is your asset? read more on:
Assets as the first element of accounting equation.
Classification of Assets
Current Assets: This includes cash and other assets which can easily be converted into cash, sold, or consumed during normal business operation.
Plant or fixed assets: a non-current asset that is more or less permanent in nature, not for sale and exclusively for business use only and has physical existence.
Current Asset Accounts Include:
1.Cash
2.Accounts Receivable
3.Inventory
4.Notes receivable
5.Interests receivable
6.Allowance for bad debts
7.Merchandise Inventory
8.Prepaid Expenses
9.Supplies on hand
Fixed Asset Accounts Include:
1.Land
2.Building
3.Equipment
4.Delivery Equipment
5.Accumulated depreciation
6.Tools
a. Asset- Land is an asset, it is considered as fixed asset because land is invested for long-term use and it cannot be converted to quickly into cash.
A. assets
Explanation:
it is classified in current assets and it serves as a buffer between manufacturing and order fulfillment.
ACCOUNTS RECEIVABLE
Assets: Defined as the economic resources which are owned by a business and are expected to benefit future operations.
Assets: the first element of accounting equation.
Classification of Assets
Current Assets: This includes cash and other assets which can easily be converted into cash, sold, or consumed during normal business operation.
Plant or fixed assets: a non-current asset that is more or less permanent in nature, not for sale and exclusively for business use only and has physical existence.
Current Asset Accounts Include:
1.Cash
2.Accounts Receivable
3.Inventory
4.Notes receivable
5.Interests receivable
6.Allowance for bad debts
7.Merchandise Inventory
8.Prepaid Expenses
9.Supplies on hand
Fixed Asset Accounts Include:
1.Land
2.Building
3.Equipment
4.Delivery Equipment
5.Accumulated depreciation
6.Tools
Answer: aWhy Account receivable is an asset?
Because this is an amount owed to a seller by a customer.This is current asset because it can be easily converted into cash on time.What is the difference between account receivable and account payable. read more on:
What is mean of asset read more on:
Liability
Explanation:
Retained Earnings is always considered as liability to the firm.
Subject Economics
The correct answer among the four given choices is letter b. Notes payable is classified as a liability. This can fall under current liabilities if the note is to be payable within the normal operating cycle of the business which is within 1 year. However, notes payable will be classified under non-current liabilities if this will be paid in a long term period or more than 1 year.
LIABILITYIn accounting, liability is the payables, debts or obligations of a business to settle for another company or entity. Liabilities have two main categories:
1. Current Liabilities-these are payables or debts which are short-term payables that needs to be paid or settled by the business within a year or in the normal operating cycle of the business.
Some Examples of Current Liabilities Accounts Payable Interest Payable Income Tax Payable Accrued Expenses Short-term loans 2. Non-Current Liabilities-these are payables or obligations that are long-term liabilities that can be settle after a year or more than a year.
Some Examples of Non-Current Liabilities Bonds Payable Long-term Notes Payable Deferred Tax Liabilities Mortgage PayableFurther topics about assets and liabilities
What is the opposite of assets
For related topics about accounting equation
Code: 11.11.3.8.
Subject Economics
answer
The correct answer among the given choices is letter c. Additional Paid-in Capital (APIC) is under shareholders equity in the balance sheet.
Additional Paid-in Capital-refers to the value of share capital above its stated par value. APIC can be
created whenever the company issues new shares and can be reduces when the company repurchases its issues shares.Normally, the entry for having the APIC is:
Debit - Cash
Credit - Common Stock (at par value)
Credit- APIC ( excess of par value)
Shareholdres Equity-In the balance sheet, this consists of:
Share CapitalRetained EarningsAdditional Paid-In CapitalTreasury SharesFor related topics about equity and liability
Code: 11.11.3.8.
Subject Economics
The correct answer among the listed choices is letter a. Prepaid expenses normally falls under the category of current assets since these are prepayments that will be generally used up within a year.
ASSETSIn accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:
Current AssetsNon-current Assets1. Current Assets-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.
Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. These are not easily convertible to cash.
Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwillOther AssetsAll fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
Code: 11.11.3.8.
Subject Economics
The correct answer amont the given choices is letter b. Unearned Revenue is money already received from the customer or client for service or product that has yet to perform or deliver. In accounting initial entry, cash is normally debited and unearned revenue is credited since it is a liability that the business need to provide yet a service or product. Unearned Revenue will be reverse once the service or product is already done or delivered to the customer.
LIABILITyIn accounting, liability is the payables, debts or obligations of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:
1. Current Liabilities-these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.
Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities-these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.
Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage PayableFurther related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
Code: 11.11.3.7.
Explanation:
Assets are the resources that a company owns.
Prepaid expense is categorized as an asset because what you bought is not yet used by the company and can only be used on the following months or years. A good example of this is the prepaid rent.
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Explanation:
In accounting, liabilites are the resources that a company owes to another business or people.
Unearned revenue is categorized as a liability because you have already received the payment while not yet giving the product or services.
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