A Friend of the Family Has Just Received Her First

question 37

Essay

A friend of the family has just received her first set of financial statements from her accountant. When she finds out that you are an accounting major, she asks you, "Why aren't my employees listed as an asset on my company's balance sheet?"
Required:
Write an explanation describing the characteristics that an economic resource must possess in order to be considered an asset. Include in your discussion the primary reason why "human resources" are not recognized as assets.

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Definitions:

Religious Conversion

The act of adopting a new religious belief that differs from the convert's previous belief system, sometimes involving a personal transformation and change in identity.

Slave From Bondage

A term indicating the liberation of individuals from conditions of slavery or involuntary servitude.

Virginia Slave Code

A set of laws established in the 17th century in Virginia to regulate the interactions between slaves and citizens, legitimizing the institution of slavery.