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.
Want to see more full solutions like this?
Chapter 2 Solutions
College Accounting - Study Guide / Working Papers 1-15
- What transactions are included in income from continuing operations? Briefly explain why it is important tosegregate income from continuing operations from other transactions affecting net incomearrow_forwardThe common characteristic possessed by all assets is a. Great monetary value b. Tangible nature Oc. Future economic benefit Od. Long lifearrow_forwardMoney received from customers for products to be delivered in the future is recorded as: B . an asset and a liability.arrow_forward
- What types of properties are likely to be valued using the receipts and expenditure or profits method of valuation and why? Why is.it.necessary to adiust the accounts. and add back certain items shown as expenses in the business records?arrow_forwardWhat account is credited when a company receives donated assets? What is the rationale for this choice?arrow_forwardDefine income from continuing operations.arrow_forward
- The monetary value charged to customers for the performance of services sold is called a(n) O asset O capital net income O revenue Farrow_forwardGive example of personal assets that eventually become an expense after utilization.arrow_forwardInvestment property is most likely to:A. earn rent.B. be held for resale.C. be used in the production of goods and services.arrow_forward
- Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt utilization,is most valuable to the business owner? And why is it most valuable,with and example.arrow_forwardMoney received from customers for products to be delivered in the future is recorded as: A . revenue and an assetarrow_forwardExplain how economic events result in assetsDescribe the objective of having different types ofassets to users of accounting informationarrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,