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Why hst rebate in considered an asset in the balance sheet?
The HST (Harmonized Sales Tax) rebate is considered an asset on the balance sheet because it represents an amount that a business is entitled to receive from the government. This rebate arises from the taxes paid on purchases that can be claimed back, indicating a future economic benefit. Since it can be converted into cash or reduce future tax liabilities, it is classified as a current asset, reflecting its expected realization within the operating cycle.
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
How do you decrease an asset account?
To decrease an asset account, you can either record a credit entry or reduce the asset's value through a transaction. For instance, selling the asset, writing it off, or recognizing depreciation will decrease the asset account balance. In double-entry accounting, the corresponding entry would typically increase a liability or equity account or decrease another asset account.
Is cash float an asset or income?
asset
What factors must be considered in determining the period of depreciation charged?
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
Why hst rebate in considered an asset in the balance sheet?
The HST (Harmonized Sales Tax) rebate is considered an asset on the balance sheet because it represents an amount that a business is entitled to receive from the government. This rebate arises from the taxes paid on purchases that can be claimed back, indicating a future economic benefit. Since it can be converted into cash or reduce future tax liabilities, it is classified as a current asset, reflecting its expected realization within the operating cycle.
How do you account for an asset at the end of the year that you have purchased in cash but is still in court's custody and not in your company's custody?
The determining factor is the ownership, not the custody of the asset. You account for it as an asset in your books.
Is Accumulated depreciation debit or credit?
Accumulated depreciation is a contra to related asset so if asset has a debit balance then it has credit balance to reduce the related asset's value.
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
How do you decrease an asset account?
To decrease an asset account, you can either record a credit entry or reduce the asset's value through a transaction. For instance, selling the asset, writing it off, or recognizing depreciation will decrease the asset account balance. In double-entry accounting, the corresponding entry would typically increase a liability or equity account or decrease another asset account.
What is the estimated salvage value of a fixed asset?
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
Is livestock in case of mixed farming fixed asset or current asset or wasting asset or tangible asset?
Tangible asset
Is cash vault a financial asset or a real asset?
real asset real asset
How can we reduce NPA'S?
NPA stands for Non-Performing Asset. It is something that the bank owns but isn't giving or generating any income to the bank. it is reduce by the following KYC norms and it is also reduce by Asset Reconstruction Company..........
Is cash float an asset or income?
asset
What is the formula for equity method?
dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET
What is Asset Reconciliation?
Asset Reconcilation means reconcilation of asset, verifying the asset with the available cash.
