BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter 1, Problem 1QY
To determine

Identify the option that indicates the correct term for the given explanation.

Expert Solution

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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