Asked by
Hillary Balbi
on Nov 15, 2024
Verified
A purchase of land and buildings would require the use of two asset accounts, Land and Buildings.
Asset Accounts
Accounts that represent the different types of economic resources owned or controlled by an entity.
Land
Real estate or property, minus buildings and equipment, that is considered a fixed asset.
Buildings
Assets categorized under real estate property that are used for business operations or rented out for revenue generation.
- Understand the distinction between different types of asset accounts and their treatment in accounting (Land, Buildings, Equipment).
Verified Answer
AM
Learning Objectives
- Understand the distinction between different types of asset accounts and their treatment in accounting (Land, Buildings, Equipment).