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Both assets and expenses are fundamental components of a company's financial statements. They represent the use of resources, with assets reflecting what a company owns that can provide future economic benefits, while expenses indicate the costs incurred in generating revenue. Additionally, both can impact a company's cash flow and overall financial health, influencing decisions made by management and investors. Ultimately, they play a crucial role in assessing a company's profitability and financial stability.
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When do assets become expenses?
Assets become expenses when their economic benefits expire.
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
Why are preliminary expenses considered as current assets?
because we get the benifit of such expenses in future
How to Compute Net Assets Value?
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
What is net income assets minus liabilities or revenues minus expenses?
Net Income is revenue minus expenses. Assets minus liabilities is Net Worth.
When do assets become expenses?
Assets become expenses when their economic benefits expire.
What kind of asset preliminary expenses?
Preliminary expenses are expenses prior to start of operating activity and shown in assets side as an other assets.
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
Why are preliminary expenses considered as current assets?
because we get the benifit of such expenses in future
How to Compute Net Assets Value?
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
What is net income assets minus liabilities or revenues minus expenses?
Net Income is revenue minus expenses. Assets minus liabilities is Net Worth.
Which accounts normally have debit balances?
Assets, expenses, and revenuesAssets, expenses, and retained earningsINCORRECTAssets, liabilities, and dividendsAssets, expenses, and dividendsCORRECT ANSWER
Where does prepaid expenses go on the balance sheet?
Assets
Where establishment expenses must placed in final account?
assets
When assets are withdrawn from a business by the owners is it considered to be expenses?
cash
Where does inventory belong in the elements of financial statements?
Assets
What is similar with asset and an expense?
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.
