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Investments are considered assets because they have the potential to generate income or increase in value over time.

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5mo ago

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What's the relationship between current liabilities and current assets?

Solvency. A company is considered solvent if it's current assets exceed it's current liabilities. A company is considered to be insolvent if their current liabilities exceed their current assets.


Why is Liabilities Capital always equal to Assets?

Liabilities and capital (or equity) together represent the sources of financing for a company's assets. According to the accounting equation, Assets = Liabilities + Equity. This equation reflects the fundamental principle that all assets owned by a company are financed either by borrowing (liabilities) or through the owners' investments (equity). Therefore, the total value of liabilities and equity must always equal the total value of assets.


Is there a formula that will help figure net income from assets liabilities owner withdrawals and owner investment?

40,000.00 Assets 26,500.00 Liabilities 1,400.00 Owners Investments 2,000.00 Owners Cash Withdrawals


Can you explain the difference between assets and liabilities?

Assets are things of value that a person or company owns, such as cash, property, or investments. Liabilities are debts or obligations that a person or company owes to others, such as loans or unpaid bills. In simple terms, assets are what you own, while liabilities are what you owe.


When a company's liabilities exceed its assets it is considered to be what?

Insolvent


When a company's liabilities exceed its assets is considered to be?

Insolvent


What types of assets are investments typically considered to be?

Investments are typically considered to be assets that have the potential to generate income or increase in value over time.


What factors effect the size of a company's investments in current assets?

The state of the current economy and how much the company owes in liabilities are factors that contribute to the size of the investments in the current assets. Additionally, the company's risk factors affects their investments.


What are both monetary and non-monetary?

MONETARY ASSETS AND LIABILITIESMonetary assets and liabilities are money or claims to future cash flows that are fixedor determinable in amounts and timing by contract or other arrangement. Examplesinclude cash, accounts and notes receivable in cash and accounts and notes payable incash.NON-MONETARY ASSETS AND LIABILITIESNon-monetary assets and liabilities are assets and liabilities that are not monetary.Inventories, investments in common stock, tangible capital assets and liabilities for rentcollected in advance are examples of non-monetary assets and liabilities.


Can you provide examples of assets and liabilities in a company's financial statements?

Assets in a company's financial statements include cash, inventory, equipment, and investments. Liabilities include loans, accounts payable, and bonds payable.


You are considered solvent if your assets are greater than your liabilities?

true


Are investments considered assets?

Yes, investments are considered assets because they represent ownership of something valuable that can potentially generate income or increase in value over time.