Question

QUESTION :

CLASSIFICATION OF ASSETS
CLASSIFICATION OF LIABILITIES

EXPLAIN THE TYPES WITH EXAMPLES FOR EACH.

NEED URGENTLY
NO SPAMMING
NO COPYING
PLZ HELP

the question is of accounts

Answer 1

Hello!

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Liability is a debt which is to be paid . A business will pay the amount of liability to the creditors.

Now , Creditors are those who have to be paid. or who have sold goods for credit.

Example= outstanding expense, capital

If there is increase in liability it will be credited, and if there is decrease in liability it will be debited.

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Assets are those things which are geld in the business because it makes production simpler , it is not for selling purpose.

Depreciation is charged on Fixed Assets.

example of assets= Debtors, Machinery.

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