Yes, land and building is an example of asset. Land and building are considered an asset because it is an important resources with value owned by a business or entity to operate. Land and building normally falls under the category of non-current assets since they are a long-term asset that has a useful life more than 1 year. Building is under the property in non-current asset line.ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or person. Assets have two categories, these are:Current AssetsNon-current Assets1. Current Assets
-these are assets that can be readily convertible to cash in a normal operating cycle of a business.Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwill
All fixed assets and intangible assets fall under the category of non-current assets.
What is the opposite of assets
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The correct answer among the above listed choices is letter b. Recording interest expense has an effect to decrease equity.Interest Expense
-it is the cost of borrowing money to an entity in a specified period of time. Interest is usually running every day but usually paid monthly, quarterly, semiannually, or annually depending on the agreement.
-this is recorded as a non-operating expense in the income statement.
The interest expense formula is:
Interest expense = (Days during which funds were borrowed ÷ 365 Days) x Interest rate x Principal
Interest Expense will usuallyincrease expenseeither increase liabilities or decrease assetsdecrease owners' equity
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