2 Which of the following statements are true about assets A

2. Which of the following statements are true about assets? A. They are economic resources owned or controlled by the business. B. They are expected to provide future benefits to the business. C. They appear on the balance sheet. D. They appear on the income statement. E. Claims on them are shared between creditors and owner. 3/9

Solution

The correct statements are A,B,C,E

--------------------------------------------------------------------------------------------------------------------------

Cash will be decreased by 20000, and expense in the income statement will be increased by 20000, and net income will be decreased by 20000.

So correct answer is A,D,E

--------------------------------------------------------------------------------------------------------------------------

The correct answers are Materiality, time interval, accrual basis

--------------------------------------------------------------------------------------------------------------------------

The correct answer are perpetual system and periodic system

--------------------------------------------------------------------------------------------------------------------------

Hope that helps.

Feel free to comment if you need further assistance J