BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 1, Problem 1QY
Textbook Problem

______ are properties or things of value owned and controlled by a business entity.

  1. a. Liabilities
  2. b. Owner’s Equity
  3. c. Assets
  4. d. None of the above

Expert Solution
To determine

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

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Get Solutions

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Get Solutions

Chapter 1 Solutions

College Accounting (Book Only): A Career Approach
Show all chapter solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What is ethics?

Accounting Information Systems

Is competition good for business? Is it good for consumers?

Foundations of Business (MindTap Course List)

NPV Project K costs 52,125, its expected cash inflows arc 12,000 per year for 8 years, and its WACC is 12%. Wha...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)