Define the following: a. Asset b. Current asset c. Liability d. Current liability e. Common stock f. Retained earnings

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Answer 1

Textbook Question

Chapter 2, Problem 1Q

Define the following:

a. Asset
b. Current asset
c. Liability
d. Current liability
e. Common stock
f. Retained earnings

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

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The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…

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Answer 2

Textbook Question

Chapter 2, Problem 1Q

Define the following:

a. Asset
b. Current asset
c. Liability
d. Current liability
e. Common stock
f. Retained earnings

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

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Answer 3

Textbook Question

Chapter 2, Problem 1Q

Define the following:

a. Asset
b. Current asset
c. Liability
d. Current liability
e. Common stock
f. Retained earnings

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

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Answer 4

Textbook Question

Chapter 2, Problem 1Q

Define the following:

a. Asset
b. Current asset
c. Liability
d. Current liability
e. Common stock
f. Retained earnings

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

Answer 8

Expert Solution & Answer

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To define: The meaning of (a) assets, (b) current assets, (c) liability, (d) current liability, (e) common stock, and (f) retained earnings.

Answer 12

Explanation of Solution

(a) Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

(b) Current assets: Assets of an organization which can be liquidated within a period of one year, is termed as current asset.

(c) Liability: Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received.

(d)Current liability: Current liability is the liability, which has to be paid within a year or within the end of fiscal year, whichever is earlier.

(e) Common stock: The amount invested in the business by an investor in exchange of shares, and receives a return or share of profit from the profits earned by the business, is known as common stock.

(f) Retained earnings: Retained earnings are the portion of earnings kept aside by the business for the purpose of reinvestments, payment of debts, or for future growth.

Answer 13

Ch. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Define a transaction anti give an example of each...Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the basic accounting equation?Ch. 2 - Prob. 5Q Ch. 2 - Prob. 6Q Ch. 2 - Prob. 7Q Ch. 2 - What is a journal entry? What is the typical...Ch. 2 - What is a T-account? What is its purpose?Ch. 2 - Prob. 10Q

Define the following: a. Asset b. Current asset c. Liability d. Current liability e. Common stock f. Retained earnings

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