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 ACCT.,CH.1-15-W/CENGAGENOW2
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- Which of the following would be considered a long−term asset? A. Office Supplies B. Land C. Retained Earnings D. Accounts Payablearrow_forwardWhich of the following terms is used when assuming a business will continue to operate in the foreseeable future? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionarrow_forwardThink of a business that you either work at or would like to own. What long-term assets do they have or would you need to own?arrow_forward
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