Asset: Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset. Equity: An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity. Liability: A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets. To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Not ChatGPT Answer

Compute the material price variance

Please provide accurate answer the accounting question not use ai

Answer 2

Question

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Answer 6

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Answer 7

Chapter 2, Problem 4E

To determine

Asset:

Asset may be regarded as a resource for the person or entity which holds it with a specific economic value and the benefits derived from such asset are generally divided over the lifespan of such asset .Also, they are held to reap some future benefits on account of pooling the funds at present. An asset may be in tangible or intangible form depending upon the nature of asset.

Equity:

An ownership interest in any kind of security or it may also be regarded as the difference value of the assets held and liabilities against the said assets. Also, in the financial statement of the company the funds contributed by the owners and any of the retained or ploughed back earnings (or losses) are regarded as shareholder's equity.

Liability:

A liability may be regarded as the burden or it depicts the obligatory aspect related to a transaction and that it is to be fulfilled in the near future. They mainly form part of the financial statements so that the end users may analyze the current standing of the entity in terms of its liabilities against the possession of its assets.

To identify: (1) the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or Credit (Cr.) to identify the kind of entry that would increase the account balance.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 2 - Prob. 1MCQ Ch. 2 - Prob. 2MCQ Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ 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

Concept explainers

Videos

Want to see the full answer?

Chapter 2 Solutions