Concept explainers
In accounting, economic resources owned by a company are known as _______, whereas debts or obligations of a company are known as________. (15-1)
To fill: The blank space provided in the statement, “In accounting, economic resources owned by a company are known as _____, whereas debts or obligations of a company are known as _____”.
Answer to Problem 1CR
Solution:
In accounting, economic resources owned by a company are known as equities, whereas debts or obligations of a company are known as liabilities.
Explanation of Solution
Equities are generally the claim against the resources required at a specific point of time. It is the value of shares that the company has issued. It also displays the book value of a company. They are owned by the people, who can vote at the meetings.
Hence, company’s economic resource are called equities.
Liabilities are the obligation of a business that emerge from the transactions made in past which are not paid. It is of two types, current liabilities which are present in an organization for a short period of time and non-current liabilities which are present in an organization for a long period of time.
Hence, debts or obligations of a company are known as liabilities.
Thus, in accounting, economic resources owned by a company are known as equities, whereas debts or obligations of a company are known as liabilities.
Want to see more full solutions like this?
Chapter 15 Solutions
Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version
- Suppose one canoe rents for 40,and2 is taken off the price for each additional canoe rented by a ground. What size group gives the most income? Assume that there are 20 canoes available.arrow_forward2. Suppose that in Example 2.27, 400 units of food A, 500 units of B, and 600 units of C are placed in the test tube each day and the data on daily food consumption by the bacteria (in units per day) are as shown in Table 2.7. How many bacteria of each strain can coexist in the test tube and consume all of the food? Table 2.7 Bacteria Strain I Bacteria Strain II Bacteria Strain III Food A 1 2 0 Food B 2 1 3 Food C 1 1 1arrow_forward
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage LearningAlgebra for College StudentsAlgebraISBN:9781285195780Author:Jerome E. Kaufmann, Karen L. SchwittersPublisher:Cengage Learning
- Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage LearningAlgebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal Littell