
1.
Assets:
Assets are the resources owned by the business that are used for current and future revenue generation of the business. Assets are acquired with the fund provided by the owners and by the creditors of the business. Therefore, the value of the assets matches with the amount of owners’ capital investment and the amount of borrowed fund. This fact is depicted in the
Liabilities:
The claims creditors have over assets or resources of a company are referred to as liabilities. These are the debt obligations owed by company to creditors. Examples of liabilities are accounts payable, salaries payable, income taxes payable, notes payable, bonds payable, and mortgage payable, unearned revenue.
The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders. The two parts of stockholders’ equity are common stock and
The correctness of the accounting method and to identify the method used or violated.
2.
The correctness of the accounting method and to identify the method used or violated.
3.
Accounting method is correct or not. It is also required to identify which principle or assumption is supported when correct and which principle or assumption is violated when incorrect.

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Chapter 1 Solutions
Financial Accounting, 10e WileyPLUS (next generation) + Loose-leaf
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