If assets are valuable resources and asset accounts have debit balances, why do expense accounts also have debit balances?

Q: Which of the following accounts is an asset? Select one: O a. Accounts payable O b. Salary expense…

A: STEP 1 An asset is something or attribute that creates future economic cash flows or benefit arising…

Q: Each of these assets require companies to use estimates, judgments, and discretion, except:…

A: Non Liquid assets are those assets that require some time to realize in cash. Equipment, Investors,…

Q: How does accrued but uncollected revenue affect the balance sheet?

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Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a "  contract that gives rise to a financial asset of one…

Q: The accounting equation underlies the process used to capture the effect of economic events. The…

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of the…

Q: Which of the following is true of unearned revenue? It is a liability account that is increased when…

A: Unearned revenue is simply cash received in advance.   Advance cash is received when services have…

Q: How can you describe the importance of holding liquid assets and monitoring those assets for a…

A: Liquidity is a measure of the ability with which a business can convert its assets into cash with no…

Q: What do you mean by Assets, Liabilities, Capital, Revenues and Expenses?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Why does a balance sheet balance (assets = Liabilities + OE)?

A: Accounting is done on double entry system, in which we book any financial transaction into books at…

Q: True or false. Assets is equal to the sum of liabilities and owners equity

A: Assets are the rights and resources that are being held by the business. It includes current assets,…

Q: What is the normal balance for an asset account?

A: Assets means the resources owned by business for the use in furtherance of business.

Q: Which of the following is an asset account? O A. Unearned Revenue B. Notes Payable O C. Accounts…

A: Asset accounts means account related to resources of the business that it owns. It can be current…

Q: provide an example of a transaction that would: increase one asset account but not change the amount…

A: Increase in one asset account but not change the amount of total assets.Transaction: Purchase of…

Q: Describe how debits and credits impact assets, liabilities , owner,s equity

A: The books of accounts are prepared as per the double accounting system. All the debits shall be…

Q: The accumulated depreciation account in the statement of financial position will be treated as a…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: What are some of the accounting applications that incorporate the time value of money into…

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Q: In the balance sheet, assets are listed by ___? A. The importance of the asset B. their date of…

A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…

Q: Balance sheet can be prepared in vertical, net asset and horizontal format. What is the difference…

A: Balance sheet refers to the financial statement of the business entity. It is divided into two…

Q: Is it possible for costs such as salaries or depreciation to end up as assets on the balance…

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: What part of the A=L +SE does expenses and revenues under and are they CR or DR balances? Expenses…

A: The accounting equation shows that sum of all assets= sum of liabilities + sum of owner's…

Q: Explain how economic events result in assets

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Which of the following has a credit normal balance    Interest expenses   Accumulated…

A: An accumulated depreciation account has a normal credit balance, increases on the debit side, is a…

Q: To capitalize an expenditure is to: Multiple Choice Debit an expense account. Credit an expense…

A: Explanation: Capitalization of expense: Capitalization of expense refers to adding the amount…

Q: Which of the following is not an asset account? cash O prepaid expense O accrued expense accrued…

A: The asset will be having a debit balance and liabilities will be having a credit balance. Incomes…

Q: When an asset is purchased on account, the credit side of the entry is to a liability account an…

A: Introduction:- The following golden rules used in accounting as follows under:- Personal:- Debit…

Q: An account is a record of increases and in a specific asset, liability, equity, revenue or expense.

A: The question is vague as the statement is first incomplete and second, the question is not…

Q: What are the differences between assets and expenses

A: Definition of Assets: Properties or things owned by business

Q: On a balance sheet, why are fixed assets depreciated?

A: Fixed assets are recognised at net carrying amount after deduction of depreciation expense for the…

Q: Briefly explain the relationship between assets, liabilities, and revenue.

A: Assets is the tangible or Intangible factor in the business, which can be valued in terms of money…

Q: Which of the following would not form part of quick assets? (A)Receivables (B) Cash (C) Prepaid…

A: Quick assets : these are the assets which are easily converted into cash (i.e. into liquid form).…

Q: tangible asset in balance sheet

A: Tangible Assets or hard assets are very crucial for carrying business operations. They are the main…

Q: O Assets and Liabilities Income and Capital Revenue and Expenses O Assets and Liabilities and…

A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first…

Q: The usefulness of the balance sheet is enhanced by classifying assets and liabilities according to…

A: A balance sheet is divided into three parts- Assets, liabilities and owner's equity. Each of the…

Q: Est-ce que certains expenses, like salary or depreciation, may become assets? Explain

A: In accounting, the balance sheet is one of the financial statements that summarizes a company's…

Q: what is the accounting equation for assets?

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Q: Why do expenditure accounts have debit balances if assets are valued resources and asset accounts…

A: The Answer

Q: What is the difference between Accumulated Depreciation and Depreciation expense?  What statements…

A: Accumulated Depreciation is a contra asset, it consists of the accumulated depreciation value since…

Q: What is the balance sheet, and what information does it provide?

A: A Balance sheet is a financial statement that provides a record of the company's assets and…

Q: Which should be classified as a financial asset? a. Patent b. Trade Accounts Receivable c.…

A: Financial assets are also known as non-physical assets. It is because it is generated through a…

Q: The type of account with a normal credit balance is: Group of answer choices an asset drawing a…

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