View Full Version : What is an Asset, Liability, and Owners' Equity
blueyez609
Oct 25, 2007, 12:12 PM
Can you tell me if the following are asset, liability, owners' equity, revenue, expense, gain, loss and if they are on a balance sheet or income statement
Accumulated depreciation
Long term debt
Equipment
Loss on sale of short term investments
Net income
Merchandise inventory
Other accrued liabilities
Dividentds paid
Cost of goods sold
Additional paid in capital
Interest income
Selling expenses
Thank you
CaptainForest
Oct 25, 2007, 11:34 PM
Balance Sheet Items
Assets
Merchandise inventory
Equipment
Accumulated depreciation
Liabilities
Other accrued liabilities
Long term debt
Equity
Additional paid in capital
Dividends paid
Income Statement Items
Revenue
Interest income
Expense
Cost of goods sold
Selling expenses
Gain
Net income
Loss
Loss on sale of short term investments
rosejay
Sep 9, 2011, 04:08 PM
I'm an accounting student. I am stuck on an example problem. If asset is $259,000 and equity is $194,250 at the beginning of the month; then asset increase $80,000 and liability increase to $52,643 what will equity be at the end of the month
pready
Sep 14, 2011, 08:42 AM
The accounting Equation is:
Assets = Liabilities + Owners Equity
Therefore: Liabilites = Assets - Owners Equity.
First you need to figure out your beginning Liabilities.
Beginning Assets - Beginning Owners Equity = beginning Liabilities.
Next add the amounts given to your Assets and Liabilities to get your ending Assets and Liabilities.
Finally you need to solve for ending Owners Equity.
Ending Assets - ending Liabilities = ending Owners Equity.