Is lent equipment by the owner an asset?

Answer 1

Yes, lent equipment by the owner is considered an asset on the owner's balance sheet, as it represents a resource that can provide future economic benefits. However, it may also be classified differently depending on the terms of the lending agreement and whether the owner retains control and benefits from the equipment. If the equipment is not owned but merely lent, it may not be listed as an asset but rather as a note or memorandum item. Ultimately, it depends on the specific accounting policies and context of the arrangement.