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What else can I help you with?
Are accrued taxes current assets or current liabilities?
Of course, it is a liability because the company doesn't own the accrued taxes. It can use the money as long as it doesn't have to pay them. So, it represents quite cheap capital to invest in the short term. But that's also risky if something goes wrong. That said, I would classify it as a current liability because it's likely to have to be paid in less than a year.
When you use cash to pay down account payable how does it affect the accounting equation?
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE
Are consumable stores asset or liability?
Consumable stores are typically considered assets because they represent items that a company owns and can use in its operations. These items can be converted into cash or consumed to generate revenue. However, once consumed, they no longer hold value, so their classification can depend on the context of accounting and financial reporting. Overall, they are recorded as current assets until used.
Why current assets are not depreciated?
current assets are not depreciated because depreciation process is use to allocate long term asset cost to specific fiscal year in which it used if fixed assets also fully used in one fiscal year then there is no need of depreciation as well.
If your total liabilities decrease by 46000 and owners equity increased by 60000 during the same period what is the amount and increase or decrease of the total change in assets?
To determine the change in total assets, we can use the accounting equation: Assets = Liabilities + Owners' Equity. If total liabilities decrease by $46,000 and owners' equity increases by $60,000, the net change in assets would be a decrease of $46,000 plus an increase of $60,000, resulting in a total increase of $14,000 in assets.
Is there a liability to being a power of attorney?
Yes. There could be personal liability if you engage in self-dealing, fail to maintain good records, co-mingle funds, convert the principal's assets to your own use or mis-manage the principal's assets.
Are accrued taxes current assets or current liabilities?
Of course, it is a liability because the company doesn't own the accrued taxes. It can use the money as long as it doesn't have to pay them. So, it represents quite cheap capital to invest in the short term. But that's also risky if something goes wrong. That said, I would classify it as a current liability because it's likely to have to be paid in less than a year.
When you use cash to pay down account payable how does it affect the accounting equation?
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE
How do you figure out average total asset?
(total assets current year + total assets prior year)/2 total assets current year plus total assets prior year then divide that total by two to find the average. Dont over-think this.
How should a limited liability ompany value its asses so as to best inform those who use its financial statements?
you mean assets dont you lol
Are consumable stores asset or liability?
Consumable stores are typically considered assets because they represent items that a company owns and can use in its operations. These items can be converted into cash or consumed to generate revenue. However, once consumed, they no longer hold value, so their classification can depend on the context of accounting and financial reporting. Overall, they are recorded as current assets until used.
Why current assets are not depreciated?
current assets are not depreciated because depreciation process is use to allocate long term asset cost to specific fiscal year in which it used if fixed assets also fully used in one fiscal year then there is no need of depreciation as well.
If your total liabilities decrease by 46000 and owners equity increased by 60000 during the same period what is the amount and increase or decrease of the total change in assets?
To determine the change in total assets, we can use the accounting equation: Assets = Liabilities + Owners' Equity. If total liabilities decrease by $46,000 and owners' equity increases by $60,000, the net change in assets would be a decrease of $46,000 plus an increase of $60,000, resulting in a total increase of $14,000 in assets.
Do you decrease a liability account with credit?
No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.
Why profit does not increase net asset?
becoz as we use assets their value decreses due to wear and tear etc
What accounts the assts division should contain?
2 main typrs of assets : A- Current Assets B- nonCurrent Assets Current assets include Cash and any other items which can convert to cash within one year , Examples of Current assets are Cash , Acc. Rec. , Inventory , Prepaid Expenses NonCurrent Assets : items can't be easily Converted into Cash & will use for extended period of time B-NonCurrent Assets include 1-Fixed Assets " Tangible Assets " : Land, building , office furniture , vehicle ... 2- Intangible Assets : GoodWill , Patent , Trademark... 3- Long Term Investment : Bonds, Security & notes
Are donations considered a current liability?
Donations are generally not considered a current liability. Instead, they are typically classified as revenue or support when received by a nonprofit organization. However, if a donation comes with specific conditions that require the organization to use the funds in a certain way, it may be recorded as a liability until those conditions are fulfilled. In this case, the liability would reflect the obligation to fulfill the donor's restrictions.
