Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be. Accounting rule for assets is, Increase in assets is always debited Decrease in assets is always credited. Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support. Accounting rule for liabilities is, Increase in liabilities is always credited. Decrease in assets is always credited. Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be. Accounting rule for equity is, Increase in Equity is always credited. Decrease in equity is always debited. To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

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Answer 1

Question

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

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Answer 2

Question

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

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Answer 3

Question

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

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Answer 4

Question

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

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Answer 5

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

Answer 6

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

Answer 7

Chapter 2, Problem 2QS

To determine

Asset: It refers to all valuable items that a company owns or items that generate some income to the company whether tangible or intangible. The more assets a company owns, the stable its financial position would be.

Accounting rule for assets is,

Increase in assets is always debited

Decrease in assets is always credited.

Liability: It refers to all items that have some monetary value in market and that company owes from others. The liability is much important for a company for financial support.

Accounting rule for liabilities is,

Increase in liabilities is always credited.

Decrease in assets is always credited.

Equity: It refers to the contribution that an owner makes to the company. The more equity the company has, the more profitable the company would be.

Accounting rule for equity is,

Increase in Equity is always credited.

Decrease in equity is always debited.

To classify: Items into asset (A) account, liability (L) account and equity (EQ) account.

Answer 8

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Answer 9

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Answer 11

Ch. 2 - Amalia Company received its utility bill for the...Ch. 2 - On May 1, Mattingly Lawn Service collected $2,500...Ch. 2 - Liang Shue contributed $250,000 cash and land...Ch. 2 - A trial balance prepared at year-end shows total...Ch. 2 - Bonaventure Company has total assets of...Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ

Solution Summary: The author explains that cash, prepaid rent, and office supplies are asset accounts.

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