Question

Which of the following items appears as an asset in the Balance Sheet of a company?
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Answer 1

Answer:

asset: Items of ownership convertible into cash; total resources of a person or business, as cash, notes and accounts receivable; securities and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate (as opposed to liabilities).

Answer 2

Answer:

A balance sheet is a report on a company's financial situation at a specific time (ie on the last day of a particular accounting period).

The balance sheet generally consists of five sections:

• The company's fixed assets, or long-term assets. These include the cost of land, structures, equipment, and transportation.
• The current assets, which comprise cash on hand and investments as well as stocks, work-in-progress, debt owed to external parties, and cash on hand.
• The company's present liabilities, such as taxes, payments received on account, money owed to trade creditors for work performed but not paid for, and money owed to banks for overdrafts.
• The loans given to the business by financial institutions, investors, and banks.
• The owner's equity, which is equal to the value of the company's shares plus any reserves held—less any losses—in the business.

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