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How does failure to record interest affect assets?
if you haven't recorded it, nothing. If you have recorded it and not paid it, it becomes a liabilty such as 'interest payable'
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Is interest income an asset?
Income of any kind is Revenue so... no - it is NOT an asset. However - the investment or savings that earned you the interest IS.
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When is interest capitalized to plant assets?
Interest is capitalized during the construction period for
a) assets built for a company's own use as well as
b) assets constructed as discrete projects for sale or lease
(a ship or a real estate...
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Why it is that an asset is a asset?
There are three characteristics that define an asset, as follows: The entity obtained the asset in a past event/transaction. The entity has present control over the asset. Future economic benefit is...
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When is an asset not an asset?
There are many things which could be considered an asset to a company that are not reflected on the company's Balance Shhet as an asset. For example: qualified, competent employees; reputation; the...