Question

ACC 105

will start my own business and the name of my business will be "Dina Groceries Store". - I will sell all the stuff of Grocery items and products, I will sell anything related to groceries. - It will be a bricks and mortar store because their sales are better. -There are two types of policies I would put in place for my business, I see those are most important to the costumers:- Refund-Discounts offer. If I don't have those policies in my business, it probably won't succeed.

The question is:

List 3 items you will need to run your business and then categorize each of those items as a Fixed Asset or a Current Expense (or if it makes sense an Intangible Asset).

Answer 1

In order to run grocery shop, following items are required: Building, Electricity and Raw material (groceries)

Among above Building is a fixed asset. A fixed asset is an asset that is tangible (visible) in nature and not purchased at regular intervals. During the course of business, capital expenditure on assets is meant for the further production or activity that will continue in future. This expenditure is generally required to start business or expand.

Electricity and raw material are current expense as they are after a particular time period and payable in less than a year.