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If it is the business of the company to create / manufacture the asset and sell then the asset would be the inventory.
If it is not the normal business of the entity to create / manufacture then it would be classified as the sale of the asset / machine / etc. depreciation may also be applicable...
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The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?
Net Fixed Assets is the term used for the difference between the balance of a fixed asset account and the related accumulated depreciation.
What type of account is equipment?
Equipment is a long term asset account available for business to generate economic revenue.
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Is a building considered an asset?
If building is owned by business then it is asset of business while if building is acquired on rent then it is not an asset of business.
Is rent revenue an asset account?
No, rent revenue is not an asset account; it is classified as a revenue account. Revenue accounts reflect earnings generated from business activities, such as rent collected from tenants. In contrast, asset accounts represent resources owned by a company that have economic value. While rent revenue contributes to a company's overall financial position, it does not meet the criteria of an asset.
An item maybe termed inventory in one enterprise The same item may be termed fixed asset or expense in another enterpriseExplain and give at least 2 examples?
The purchase of a car in one business could be inventory for one business and a fixed asset to another business or expense.
The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?
Net Fixed Assets is the term used for the difference between the balance of a fixed asset account and the related accumulated depreciation.
What type of account is equipment?
Equipment is a long term asset account available for business to generate economic revenue.
Is stockholders equity an asset account?
Stockholder equity is a liability account as it is refundable by business at time of liquidation.
What is the normal balance of an asset account according to GAAP?
Debit. For online help in the basics of bookkeeping, and for information about recording business transactions, see the Related Link.
Is Loss on Sale of Asset a Equity account or Income Account?
Loss on sale of asset reduces the actual profit of company that's why it is a part of income statement and shown as an expense to business.
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Difference between asset beta and equity beta?
Normally, Asset Beta takes account of only business risks while Equity Beta takes account of both business and financial risks. For further information, get hold of a good corporate finance textbook.
Is a building considered an asset?
If building is owned by business then it is asset of business while if building is acquired on rent then it is not an asset of business.
Is rent revenue an asset account?
No, rent revenue is not an asset account; it is classified as a revenue account. Revenue accounts reflect earnings generated from business activities, such as rent collected from tenants. In contrast, asset accounts represent resources owned by a company that have economic value. While rent revenue contributes to a company's overall financial position, it does not meet the criteria of an asset.
Is bank account a balance sheet item or income statement?
Bank account is actual bank account and it is asset of business and like all other assets which are shown in balance sheet bank account also shown under current asset portion of balance sheet.
Is a cheque account an asset?
The account itself is not an asset, but any money credited to the account is.
