Meaning of Asset, equity, capital, and liability

Related BrainMass Solutions

• Contributed Capital and Current Liabilities from Operations

  335395 Contributed capital is stockholders' equity; current liabilities arise from operations 1. You and Frank are studying for an upcoming accounting exam. Frank says, Contributed capital is basically the stockholders' equity of the company.

• Balance Sheet Classifications

  Equity - a negative capital account disclosed separately within equity 3. Equity - a separately stated component of the equity section 4. Current liabilities assuming the dividends will be paid within one year 5.

• Accounting equation: assets and liabilities

  DR Drawing 1,000 (decrease owners equity) CR Cash 1,000 (decrease assets) The owners equity account is made up of 4 types of accounts Revenue and Capital increase the Owners Equity account and Expenses and Drawing decrease the Owners Equity account

• Account Balances

  Accounts Payable Liability Credit b. Cash Asset Debit c. Land Asset Debit d. Notes Payable Liability Credit e. Accounts Receivable Asset Debit f. Mary Smith, Capital Equity Credit g. Supplies Asset Debit h.

• the following accounts would normally carry a debit or a cre

  Tax liability. Patents. Prepaid insurance. Paid-in capital. Product sales. Accounts payable. Accounts receivable. Accumulated depreciation. Land. Interest income. Cost of goods sold. Computer equipment.

• Credit increases of decreases the account balance

  Capital Stock 3. Equipment 4. Inventory 5. Accounts Payable 6. Building 7. Notes Payable Credit increases equity and liability and decreases assets 0. Cash Decreases - Asset - decreases 1. Accounts Receivable - asset - decreases 2.

• Calculating ratios: capitalization

  Altman z-score uses working capital to total asset ratio, retained earnings to total asset ratio, EBIT to total sales ratio, market value of equity to market value of liability ratio, and sales by total asset ratio to determine whether the corporation

• Corporate Finance : Liquidity Ratios, Profitability, Collection Period, Inventory Turnover, Leverage and Sustainable Growth

  intensity ratio = Asset / Sales = 0.70 debt / equity = 0.5 NI = 30000 Dividends = 6000 Then Asset / equity = 1+ debt / equity = 1.5 ROE = NI / equity = (NI / Sales) * (Sales/Asset) * (Asset / equity) = profit margin * (1/ capital intensity

• Accounting

  ------------------ $13,700 (See the retained earning statement above) TOTAL owner equity ---------------$18,150 TOTAL LIABILITY AND OWNER'S EQUITY ----- $17,050 + $18,150 = $35,200, which balances with the total asset