BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
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

To determine

Find the correct option, the option that indicates the correct term for the given explanation.

Answer

The correct answer is option (c).

Explanation

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.

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

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)

Find all the answers to your study problems with bartleby.
Textbook solutions plus Q&A. Get As ASAP arrow_forward