Net assets
NO! The accounting equation isAssets = Liability + Owners EquityTherefore if you want to change the formula around the following would be correct.Liability = Assets - Owners EquityorOwners Equity = Assets - Liabilities
It's neither assets nor liability if a salary is already paid, it's called expense. But a salary before the payment would be called liability and after the payment it is going to be called an expense
A shift in assets would not affect liability or equity: Receive payment of an Accounts Receiveable, Purchase a Fixed Asset with Cash, move funds from Cash to Investments (Bonds, etc.).
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
Deferred Expenses are on the asset side of the balance sheet, not the liability side. Long Term relates to anything beyond the next twelve months, but a long term deferred expense would probably be listed as "Other Assets". The deferred expenses are correctly represent the Assets of the company. But, if a company has not paid its rent & its due in next 12 month or may be due on virtual payment basis in 2-3 years, then such expense (deferred rent) is required to be shown on Liability side of the B/S. Furthermore, such payments to be made in next 12 months are to be presented as Current Liability & payments to be expelled in more than 12 months are to be shown as Non-Current Liability Section.
NO! The accounting equation isAssets = Liability + Owners EquityTherefore if you want to change the formula around the following would be correct.Liability = Assets - Owners EquityorOwners Equity = Assets - Liabilities
Fixed assets are not liabilities, they are assets that can not be quickly liquidated (turned into cash). If the company goes under, fixed assets would be difficult assets to get cash for.
It's neither assets nor liability if a salary is already paid, it's called expense. But a salary before the payment would be called liability and after the payment it is going to be called an expense
Business liability insurance protects a company's assets from a lawsuit. If a business is high risk or doesn't have enough capital to cover a lawsuit, they should have business liability insurance.
Limited and unlimited liability differ from one another significantly. Limited liability is an ownership in a business where one contributes certain funds but, if the company were to go under, the individual would not lose all of their assets. Unlimited liability is when one essentially goes in all or nothing within their business. If the business fails, the individual's personal assets are also at stake.
A shift in assets would not affect liability or equity: Receive payment of an Accounts Receiveable, Purchase a Fixed Asset with Cash, move funds from Cash to Investments (Bonds, etc.).
If you pay down a loan you are reducing and asset, but you are also reducing a liability, so your balance sheet would still be in balance. So to answer your question yes it does affect your assets. It reduces your cash.
Reverse piercing the corporate veil is the act holding a shareholder personally liable for the debts of the corporation and then (when taking his assets as damages) reaching into the assets of other corporations to which he is a shareholder. Normally when a corporation takes on too much debt and the creditors want their money, it goes insolvent (bankrupt). However, if the corporate formalities have not been observed (there was commingling of personal and corporate funds, there was a failure to maintain the corporate records, etc.) and adhering to the limited liability rules of corporations would promote injustice, a creditor can "pierce the corporate veil" and reach past the limited liability into the personal assets of the shareholder(s). However, if the personal assets of the shareholders are mostly stock in other corporations that have also taken too much debt, this doesn't help much (because the stocks wouldn't be worth much on the market and dissolving those other corporations means their assets would be paid to creditors before they can be distributed to the shareholders). In that situation, the court can "reverse pierce the corporate veil" and take the assets of the other corporations, bypassing the line of creditors.
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
Debit balance would decrease the liability as credit balance increases the liability.
That would be liability coverage.