Question

Explain what an asset is and give three examples. Explain what a liability is and give...

Explain what an asset is and give three examples.

Explain what a liability is and give three examples.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1st part:

An asset is a resource which is used in ordinary course of business either to generate revenue, reduce costs,comply with applicable laws and regulations.

Example:

Plant and Equipment used in manufacture of goods.

Furniture and fixtures used in factories and offices.

Trucks and other vehicles used to deliver goods, transport materials etc.

2nd part:

Liability is the obligation of the business to a third party, this obligation arises in the ordinary course of business.

example:

Notes payable

Loans and advances obtained

Accounts payable.

Add a comment
Know the answer?
Add Answer to:
Explain what an asset is and give three examples. Explain what a liability is and give...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT