Assets do not indicate ownership
It is important to understand that in an accounting sense an asset is not similar to ownership. In accounting, ownership is described by the term “equity”. Assets are equal to “equity” plus “liabilities”. They are usually listed on balance sheet. It has a normal balance or usual balance, of debit (i.e., asset account amounts appear on the left side of a ledger).
June 27, 2008 | Filed Under Business and Finance
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