Answer is b, share capital. share capital appears only in the balance sheet of corporations. share capital does not appear in the balance sheet of single proprietorship or partnership.
Double Entry bookkeeping: Comes from two sides of an equation:
PROPERTY= OWNERSHIPAccounting Values or Elements
A. Assets: defined as the economic resources which are owned by a business and are expected to benefit future operations.
B.Liabilities: debts or financial obligations of the business to its creditors and refer to the claims of creditors and refer to claims of creditors against the assets of the business.
C.Owner’s Equity-Known as the right or claims of the owner over the assets of the business.
Analyzing business transactions using T-Accounts
Account: an accounting device used in summarizing the changes in the assets, liabilities and owner’s equity account caused by business transactions and events.
Ledger: Means group of accounts: it refers also to the book where the accounts are kept.
T-Accounts: This consists of two lines, one vertical and one horizontal, and resembles the letter T. The title of the account is written on the horizontal, ( Top) line. Increases and decreases in the account are entered on the different sides of the vertical line.
Name of the Account Account No.
Left Side Right Side
Debit Side Credit Side
Value Received Equals Value Parted with
What is the accounting equation? read more on:
What is the basic accounting equation read more on:
The correct answer among the listed choices is letter a. Inventories normally falls under the category of current assets since it can be expected that raw materials and finished goods can be sold within normal operating cycle of business.
ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:
Current AssetsNon-current Assets1. Current Assets
-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.
Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.
Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwill
All fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
THE EFFECTS OF ORDERING A SHIRT IN AN ONLINE STORE BASED IN LONDON
Online shopping is unarguably the trend right now. Most people, especially the busy and the lazy ones tend to resort to online shopping. In online shopping, products are just one click away, no doubt that online shopping is peaking right now. However, like any other things, it has also negative and positive effects.
POSITIVE EFFECTS
You can buy stuff like shirts that are not available at your local stores.
There are a variety of choice to choose.More convenient and easy.Saves time and energy
NEGATIVE EFFECTS
It takes time for the product to arrive.Quality is not sure because the shopping is done online.If there are problems in the product, the return will surely be very hassle.Product or parcel can be lost along the way of the delivery.
Double Entry bookkeeping: Comes from two sides of an equation:
PROPERTY= OWNERSHIPAccounting Values or ElementsA. Assets: defined as the economic resources which are owned by a business and are expected to benefit future operations.
B.Liabilities: debts or financial obligations of the business to its creditors and refer to the claims of creditors and refer to claims of creditors against the assets of the business.
C.Owner’s Equity-Known as the right or claims of the owner over the assets of the business.
Analyzing business transactions using T-AccountsAccount: an accounting device used in summarizing the changes in the assets, liabilities and owner’s equity account caused by business transactions and events.
Ledger: Means group of accounts: it refers also to the book where the accounts are kept.
T-Accounts: This consists of two lines, one vertical and one horizontal, and resembles the letter T. The title of the account is written on the horizontal, ( Top) line. Increases and decreases in the account are entered on the different sides of the vertical line.
Name of the Account Account No.
Left Side Right Side
Debit Side Credit Side
Value Received Equals Value Parted with
What is the accounting equation? read more on:
What is the basic accounting equation read more on:
Subject Economics
The correct answer among the listed choices is letter a. Inventories normally falls under the category of current assets since it can be expected that raw materials and finished goods can be sold within normal operating cycle of business.
ASSETSIn accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:
Current AssetsNon-current Assets1. Current Assets-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.
Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.
Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwillAll fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
Code: 11.11.3.8.
Online shopping is unarguably the trend right now. Most people, especially the busy and the lazy ones tend to resort to online shopping. In online shopping, products are just one click away, no doubt that online shopping is peaking right now. However, like any other things, it has also negative and positive effects.
POSITIVE EFFECTS
You can buy stuff like shirts that are not available at your local stores. There are a variety of choice to choose.More convenient and easy.Saves time and energyNEGATIVE EFFECTS
It takes time for the product to arrive.Quality is not sure because the shopping is done online.If there are problems in the product, the return will surely be very hassle.Product or parcel can be lost along the way of the delivery.Read more here:
Opportunities brought by on;ine shopping
Interactivity of online shopping
Online security threats
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