Security deposits from customers side is a liability for business.
Current Asset
Yes. If it is a deposit paid to a vendor, then it will be classified as an asset. If it is a deposit received from a customer, then it is a liability. Depending on when it is expected to be returned, you will classify it as either current or non-current.
A rent deposit is not typically classified as a financial asset. Instead, it is considered a liability or a form of security for the landlord, as it represents money held to cover potential damages or unpaid rent. While the tenant may view it as a recoverable amount at the end of the lease, it does not generate income or appreciate in value like traditional financial assets do.
If it is customer deposits then it is liability of business to be paid then its balance is credit but if it is deposit with other companies or in bank then it is asset of business and default balance is debit balance.
yes It is an Asset, not a Liability.
Current Asset
Yes. If it is a deposit paid to a vendor, then it will be classified as an asset. If it is a deposit received from a customer, then it is a liability. Depending on when it is expected to be returned, you will classify it as either current or non-current.
Yes, Asset side, I am contributing my share to GDP Liability side, Social security systems.
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
A rent deposit is not typically classified as a financial asset. Instead, it is considered a liability or a form of security for the landlord, as it represents money held to cover potential damages or unpaid rent. While the tenant may view it as a recoverable amount at the end of the lease, it does not generate income or appreciate in value like traditional financial assets do.
yes It is an Asset, not a Liability.
If it is customer deposits then it is liability of business to be paid then its balance is credit but if it is deposit with other companies or in bank then it is asset of business and default balance is debit balance.
Yes, a utility deposit is an asset.
asset
The accounting journal entries to record a security deposit should be a separate entry titled security deposit. You should include the tenants name, and it should be considered a liability since you will have to return it at some point.
asset liability
A demand deposit is considered an asset for the account holder because it represents money that they can access and use at any time. For the bank, however, demand deposits are classified as a liability since they represent funds that the bank owes to its customers. Thus, the classification depends on the perspective of the account holder versus the financial institution.