Identify whether the given statement is true or false.
Answer to Problem 1TF
The statement “Asset are items that are owned by the business and are expected to provide future benefits” is true.
Explanation of Solution
Asset:
Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue in the future course of time. Some of the examples of assets include merchandise, fixtures, buildings, furniture, and cash.
These assets denote the amount of money payable to the business by its customers as an effect of making sales “on account or on credit”.
Therefore, from the above explanation, it is ascertained that the statement asset items that are owned by the business and are expected to provide future benefits is true.
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Chapter 2 Solutions
College accounting, chapters 1-9
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- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College