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What are differences between assets liabilities capital income and expenses?
Wiki User
∙ 11y ago
Definition of Asset: a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
Definition of Liabilities: A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services.
Definition of capital:
1. Financial assets or the financial value of assets, such as cash.
2. The factories, machinery and equipment owned by a business.
Wiki User
∙ 11y ago
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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.)
Differentiate between capital expenditure and recurrent expenditure with example?
capital expenditures is expenses on assets and infrastructure while recurrent expenditure is expense on liabilities or things that keep on happening
Wages belong to which expenses?
Wages Payable, or Payroll Liabilities. Also, classifies as Capital Expense.
What is the usual order of accounts in the general ledger?
Assets, Liabilities, Owner's Capital, Drawings, Revenues, and Expenses
What is primary capital?
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
What is primary working capital?
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
Which of the following accounts are temporary accounts that must be closed at the end of the year?
Assets, liabilities and capital Revenues, expenses and withdrawals
What is difference between capital and liability?
"Capital" is the amount of resources provided by the owner, while liabilities are the amount of resources provided by the owner AND other people. Assets = Capital + Liabilities
What is the difference between capital and liability?
"Capital" is the amount of resources provided by the owner, while liabilities are the amount of resources provided by the owner AND other people. Assets = Capital + Liabilities
What is the accounting equation and how does it work?
The accounting equation displays the relationship between capital, liabilities and the assets. The accounting equation shows that the assets are a sum of the liabilities and the invested capital.
What is an expanded basic accounting equation?
The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).
What are the differences between capital reserves and revenue reserves?
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
