Consider the Following Accounts and Identify Each as an Asset

question 210

Essay

Consider the following accounts and identify each as an asset (A),liability (L),or equity (E).

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Definitions:

Legal Person

An individual or organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Civil Legal Capacity

The ability of an individual to enter into legal agreements and contracts and to sue or be sued.

Civil Obligations

Duties or responsibilities recognized by civil law that require an individual or entity to act or abstain from acting in a certain way.

Franchise

A business model that allows individual owners to operate a store, restaurant, or other establishment using the branding, products, and operational support of an established company.