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Liability Account:
A liability account may be regarded as the account depicting the burden or 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.
Cash Account:
Cash account forms part of the assets of the company, or rather more specifically it is the part of current assets of the company. Cash account reveals the liquidity position of the firm in order to meet its obligations in the near future.
Revenue Account:
Revenue account forms the part of revenue in chart of accounts and depicts the value earned by the company on account of its core activities of business.
Asset Account:
An asset account reveals the value of current and fixed assets held by the company whether in tangible or intangible form. The company acquires assets based on the nature of benefits to be acquired from them. Short-tem benefits are gained from current assets as they provide liquidity to the firm, whereas on the other hand fixed assets' benefits are spread over its life span and they are not acquired to reap profits in the near future.
Equity Account:
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 and recorded in equity account.
To identify: The entries to record the given transaction.
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Chapter 2 Solutions
GEN CMB FINCL MGRL ACCT CNCT >BI<
- Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: Unit manufacturing costs Variable costs $ 1,440 Fixed overhead 720 Total unit manufacturing costs $ 2,160 Unit nonmanufacturing costs Variable 360 Fixed 840 Total unit nonmanufacturing costs 1,200 Total unit costs $ 3,360 The company has the capacity to produce 3,000 units per quarter and always operates at full capacity. The ranges sell for $4,000 per unit. Required: a. Florida Kitchens receives a proposal from an outside contractor, Burns Electric, who will manufacture 1,200 of the 3,000 ranges per quarter and ship them directly to Florida’s customers as orders are received from the sales office at Florida. Florida would provide the materials for the ranges, but Burns would assemble, box, and ship the ranges. The variable manufacturing costs would be…arrow_forwardCan you please solve this general accounting problem?arrow_forwardCompute the return on total assets of this financial accounting questionarrow_forward
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