0
Are assets primarily financed by debt or owner equity in each case?
Wiki User
∙ 11y ago
One way to obtain the use of assets is to raise debt or equity capital and then use this capital to buy them. An alternative way to obtain the use of assets is by leasing. Before the 1950s, leasing was generally associated with real estate (land and buildings), but today it is possible to lease almost any kind of asset. Although leasing is used extensively across all industries, it is especially prevalent in the health services industry, primarily in the use of medical equipment and information technology hardware and software.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the owners equity if the total asset is 824580 and the liabilities is one half of its total assets?
Total Assets = Total liabilities + owner equity Total Assets = 50% liability + 50% equity 824580 = 824580*50% + 50% owner equity Owner Equity = 100% total Assets - 50% liability Owner Equity =824580 - 412290 Owner Equity = 412290
What is the shareholders equity if it has current assets of 2230 net fixed assets of 9900 current liabilities of 1380 and long-term debt of 4040?
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
What is owner's equity?
Owner's equity is considered the source of the company's assets. Owner's equity is also referred to as the book value of the company, which include the reported assets minus the reported liabilities.
Where does owner capital go on the balance sheet?
It goes under the Owner's Equity of the Balance Sheet. Assets = Liability + Owner's Equity
What items affect owner's equity?
assets and liabilities
What is the owners equity if the total asset is 824580 and the liabilities is one half of its total assets?
Total Assets = Total liabilities + owner equity Total Assets = 50% liability + 50% equity 824580 = 824580*50% + 50% owner equity Owner Equity = 100% total Assets - 50% liability Owner Equity =824580 - 412290 Owner Equity = 412290
What is the shareholders equity if it has current assets of 2230 net fixed assets of 9900 current liabilities of 1380 and long-term debt of 4040?
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
What is owner's equity?
Owner's equity is considered the source of the company's assets. Owner's equity is also referred to as the book value of the company, which include the reported assets minus the reported liabilities.
Where does owner capital go on the balance sheet?
It goes under the Owner's Equity of the Balance Sheet. Assets = Liability + Owner's Equity
What items affect owner's equity?
assets and liabilities
What is basic accounting equation?
Assets +Liabilities=Owner's Equity
What is the Equation of fundamental accounting?
Assets = Liabilities + Owner's Equity.
Expanded accounting equation?
Assets =Liabilities +(Stockholders' Equity=Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. )Assets =Liabilities +(Owner's Equity=Owner's Capital + Revenues - Expenses - Owner's Draws.)
What is Assets minus Liabilities equal?
Assets(minus)lliabilities=Owner equity
Why are total assets in a business always equal to the total of the liabilities and owner's equity?
Total assets are equal to total liabiliteis and owner's equity because it is the basic accounting equation which is as follows: Total Assets = total liabilities + Owner's equity if this accounting equation is not balance it means there is some mistake in preparation of financial statements.
What does debt to equity ratio tell us?
It tells about the capital structure of the company-how much it is debt financed and how much owner's equity is there.
What are some examples of owner's equity?
Owner's equity shows the owners investments minus their withdrawals from the business. Basically it is the assets minus the liabilities.
