Concept explainers
(a)
Concept introduction:
Assets are the items that the company owns and helps in generating revenue during its lifespan.
To state:
Two Assets.
![Check Mark](/static/check-mark.png)
Answer to Problem 1DQ
Explanation of Solution
Assets are the items that your company owns which can provide future economic benefits. Assets are defined as resources that help generate profit in your business.
These are shown in the
As per
Some of the examples for assets are:
- Cash
- Land and Buildings
- Equipment
- Patent
Goodwill etc.
(b)
Concept introduction:
Liability is defined as obligations that your business needs to fulfill. In simple words, Liability means credit.
To state:
Two Liabilities
![Check Mark](/static/check-mark.png)
Answer to Problem 1DQ
Accounts Payable Account & Bank Loan Account
Explanation of Solution
Liabilities are the items the company oweto others. Liabilities are defined as a way to raise finances for the company.
These are shown in the balance sheet of the companies on left side. Liabilities are classified as current and non-current liabilities wherein current liabilities have a maturity period of less than or equal to a year, whereas, non-current liabilities have maturity period of more than a year.
As per
Some of the examples for liabilities are:
- Accounts Payable
- Interest Payable
- Unearned Revenue
- Long term debt
- Bank Loan etc.
(c)
Concept introduction:
Equity is defined as the items that show the investments of the owner or the investors in the company.
To state:
Two Equity.
![Check Mark](/static/check-mark.png)
Answer to Problem 1DQ
Equity Share Capital Account &
Explanation of Solution
Equity accounts represent the items that displays the amount invested by various people in the company.
Owner’s equity is the difference between what you have and what you owe. It is regarded as the owner's investment or net worth. It denotes the portion of the total assets that the owners or stockholders of the company own
As per Accounting Equation, Equity = Assets - Liabilities:
Some of the examples for equity accounts are:
- Retained Earnings
- Additional paid-in Capital
- Drawings
- Common
Stock Equity - Preference Stock
Want to see more full solutions like this?
Chapter D Solutions
Managerial Accounting
- Determine the shares outstanding once the debt is issuedarrow_forwardABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70 per share. The firm is considering a capital structure with 53% debt at a rate of 5% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued.arrow_forward?!arrow_forward
- If the current market price for selling a product at Andrew Materials is $15.50 per unit, and the company wishes to make a 12% profit, what is the target cost? Help mearrow_forwardCompute the manufacturing margin for the company under variable costingarrow_forwardPlease answer me this accounting questionarrow_forward
- Waht is the correct answer general Accountingarrow_forward4 POINTSarrow_forwardABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70 per share. The firm is considering a capital structure with 53% debt at a rate of 5% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued. Hiiii tutor give me Answerarrow_forward
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305080577/9781305080577_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)