BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Liabilities
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Assets
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Revenue
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Owner’s Equity
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Detailed explanation-1: -Resources owned by a company (such as cash, accounts receivable, vehicles) are referred to as the assets of a company.
Detailed explanation-2: -An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company’s balance sheet. They’re classified as current, fixed, financial, and intangible.
Detailed explanation-3: -Current assets include cash and other things that can be used as cash, accounts receivable, inventories, and prepaid expenses.
Detailed explanation-4: -Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR.
Detailed explanation-5: -Also known as accounts receivable, trade receivables are classified as current assets on the balance sheet. Current assets are assets which are expected to be converted to cash in the coming year.