College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Question
Chapter 1, Problem 1QY
To determine
Identify the option that indicates the correct term for the given explanation.
Expert Solution & Answer
Answer to Problem 1QY
The correct answer is option (c).
Explanation of Solution
Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.
Justification for correct answer: Assets are the properties owned and controlled by the businesses to generate income for the company. Hence, option (c) is correct.
Justification for incorrect answers:
- Option (a) is incorrect because liabilities are the debt obligations owed by company to creditors.
- Option (b) is incorrect because owners’ equity is the financial interest of the owner to invest in the business.
- Option (d) is incorrect because option (c) is the correct answer and the phrase ‘none of the above’ is incorrect.
Conclusion
Therefore, option (c) is correct answer.
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Students have asked these similar questions
What is the owner’s right to the assets (claims to the assets) of the business called?
Group of answer choices
cash
revenue
accounts receivable
owner’s equity or capital
"Distinction should be made between the personal transactions of owner and those of entity." Which of the following is the accounting concept defined in the paragraph?
Select one:
a. Dual Aspect
b. Going Concern
c. Business Entity
d. none of the option
Why is the Equity of an owner shown in the Liabilities and not in the Assets on a companies Financial Statement?
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - In July of this year, M. Wallace established a...Ch. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - P. Schwartz, Attorney at Law, opened his office on...Ch. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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