What are SALES: assets, liabilities, or equity?
2007-08-23 13:41:36 · 4 answers · asked by Rita 3 in Business & Finance ➔ Investing
Assets, liabilities and equity belong on the balance sheet, while sales belong on the income statement. At the end of the year, the income statement shows a net revenue or expense, which essentially becomes an increase or decrease in assets or equity.
2007-08-23 13:47:36 · answer #1 · answered by PopperDave 3 · 0⤊ 0⤋
Sales are revenue and I guess cash is a form of asset , and not a liability because that is a bill / debt / obligation .
Equity is the share of something that you own and could be cash ( derived from sales ) .
2007-08-23 20:47:52 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Assets are things that you own and have value.
Liabilities are things that costs you money
Equity is a value you get from owning something, like interest on a bank account.
Now choose the one you think sales would fit into. Do sales bring in money or do they cost you money?
2007-08-23 20:50:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Sales is the amount of money you received from the goods the company is set up to sell. It does not include sale of assets.
Assets is the value of what you own. Cash, stocks, buildings, etc
Liabilities is the value of what you owe. Loans from banks, money owed to suppliers etc.
Equity is the share you have in a company or business.
2007-08-23 21:14:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋