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The Balance sheet in India the liability is on the left hand side asset is on the right hand side?
Wiki User
∙ 15y ago
Liabilities' side of balance sheet deals with how the funds are raised whereas the assets' side of balance sheet deals with how the funds are invested. Firstly the funds are raised (by incurring liabilities) after which they are invested (asset formation). Left-to-right is a general way of reading/writing, hence the liabilities side would appear before assets.
Wiki User
∙ 15y ago
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1 Which of the following best describes an asset A. Anything of value owned by the business B. Always equal to a liability C. Listed on the right-hand side of a balance sheet D. Something that a?
which of the following best describes an asset of a business
Match the balance sheet entries on the left with their corresponding real-world features on the right?
A. Asset/Property: B. Liability/Debt: C.Net worth/Equity ( Apex )`St. Jimi
What best describes an asset anything of value owned by the business always equal to the liability listed of the right had side of a balance sheet something that a business owes?
Anything of value owned by the business.
Is a valuation account an asset or liability?
The conceptual framework considers asset valuation accounts to be part of the related asset account. They are not considered to be assets or liabilities in their own right.
Is Operating leases considered to be a spontaneous source of financing?
I don't know if spontaneous is the right word; but they are considered by some to be a type of "off-balance sheet" financing. The reason for this is because very often, companies lease an item with the intent of eventually owning that item. An operating lease does not create a liability on the balance sheet the way financing an asset would. That being said, an asset that is being "financed" through a lease should more correctly be classified as a capital lease, which does create a balance sheet liability.
Why liability on left and asset on right?
This is inaccurate, neither liability nor assets dictate right or left of anything. However, if you are speaking of the Balance Sheet (one of many examples), Assets are actually listed on the Left Column (as they maintain a Debit Balance) while liabilities will be listed in the Right Column (as they maintain a Credit Balance) To decide where the entry goes remember what Debit and Credit actually mean. Debit literally means Left Column or Left side, while Credit is just the opposite and means Right Column or Right Side. Because Assets maintain a Debit Balance, all entries that increase the asset will be listed in the "left" column, while all entries that will decrease the asset will be listed in the "right" column. For example, you purchase Supplies for $1,000 using CASH. Your entries will increase Supplies with a debit and decrease cash with a credit. Supplies (dr) $1,000 (left side) Cash (cr) $1,000 (right side) It is just the opposite for Liabilities, as they maintain a Credit balance. Take the same transaction above but instead of paying cash you purchase the $1,000 in supplies on Credit, this gives you a liability (something you owe) You will still increase your asset of supplies with a debit, but this time you will Credit your Account Payable.
What is classified as an intangible asset on the balance sheet?
goodwill
Human resource is an asset or liability Justify your answer?
Human resources are an asset because the department is in control of the people who work for you. With the right management, human resources can help the organization increase profits.
What is net liability position?
On a balance sheet the net liability section is on the right hand side above owners equity. Net liability is the sum of all debts owed by the organization.
Can deferred tax asset offset against deferred tax liability?
Yes, but only if the entity has the legal right to settle on a net basis and they are levied by the same taxing authority on the same entity or different entities that intend to realise the asset and settle the liability at the same time.
Does loan go under income statement as an expense?
No, it is a liability and goes on the right side of a balance sheet.
Do unearned fees go into an income statement?
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
