Is a debt an asset or an owner s equity?

Claims are assets.

Reasons: 1) Assets refer to the resources formed by the past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Assets include cash, bank deposits.

Short-term investments, receivables and prepayments, expenses to be amortized.

Inventories, investments of various equity natures that are held for more than one year, bonds that cannot be realized or are not intended to be realized, other debt investments and other long-term investments, etc.

2) Owner's equity.

It refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise.

In accounting, income has a specific meaning, which is different from the meaning of the word "income" in life. You have to understand the accounting implications of "assets" and "income"!

Income refers to the total inflow of economic benefits formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and are not related to the owner's capital investment, including income from the sale of goods, income from labor services, income from the transfer of the right to use assets, interest income, rental income, dividend income, etc., but does not include the payment collected for third parties or customers.

Characteristics of income.

Revenue is generally generated in the day-to-day business activities.

It may manifest itself as an increase in assets or a decrease in liabilities, or both.

In accounting, it may cause an increase in the owner's equity.

Income only includes the inflow of the economic benefit of the enterprise, so it should not include payments collected for third parties or customers.

Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

By definition, an asset has the following characteristics:

1 Assets are expected to bring economic benefits to the business.

If a project is not expected to bring economic benefits to the enterprise, it cannot be recognized as an asset of the enterprise, and a project that has been recognized as an asset in the previous period cannot bring economic benefits to the enterprise again, nor can it be recognized as an asset of the enterprise.

2. Assets should be resources owned or controlled by the enterprise.

Ownership is usually the primary factor to be considered in determining whether an asset is present, but in some cases, although some assets are not owned by the enterprise, i.e. the enterprise does not enjoy its ownership, the control of the assets by the enterprise also indicates that the enterprise is able to derive economic benefits from the assets.

3. Assets are formed by past transactions or events of the enterprise.

Only past transactions or events can generate assets, and transactions or events that the enterprise expects to occur in the future do not form assets.

It is an asset. A creditor's right is a civil law right to request another person to do something (act or refrain from acting). Based on the principle of relativity of rights and obligations, the creditor is a debt, that is, it must be a civil law obligation for a certain act (act or omission).

Therefore, the relationship between debt and debt is essentially a creditor's right and debt relationship in civil law, and neither creditor's right nor debt can exist independently, otherwise it will lose its meaning.

Different from property rights, creditor's rights are a typical relative right, which only takes effect between the creditor and the debtor, and in principle, the debt relationship between the creditor and the debtor cannot be used against a third party.

The causes of debts can be mainly divided into contract, management without cause, unjust enrichment and tort in the civil law debt section. The reasons for the extinction of debts include repayment, withdrawal, set-off, and forgiveness.

Claims are assets, and debts are liabilities.

Payment; Processed models; Rent; Delivery; transportation of goods; Technical services. For the first three: loans, processing money, and rent, we can classify them as monetary claims, because they are all directly based on money.

For the latter three, we can call them non-monetary claims, which do not directly take money as their content, but directly manifest themselves as an act, a thing, or an intellectual achievement. Monetary claims are our most common and most important claims.

It is an asset.

Assets: refers to the enterprise resources formed by past transactions or events of the enterprise, controlled or owned by the enterprise, and expected to bring economic benefits to the enterprise.

Liabilities: Obligations that are formed by past events or transactions of the enterprise and are expected to cause the economic benefits of the enterprise to flow out of the enterprise.

Owner's equity: refers to the rights and interests enjoyed by users after deducting liabilities from the assets of the enterprise. Including: capital invested by users, losses and gains, retained earnings, etc.

Assets = Liabilities + Owners' Equity. The formula indicates:

Assets are equal to liabilities plus owners' equity.

The left side of the formula illustrates the asset's **.

The assets are the investments of creditors and the investments of owners.

So assets = liabilities + owners' equity.

This equation is the basis of accounting and accounting, as well as the basis of the balance sheet, which indicates the share of both shareholders and creditors in the assets of the enterprise. When the liabilities remain unchanged, the assets and the owner's equity change in the same direction, and when the owner's equity and liabilities change, the change in assets is equal to the sum of the two.

Assets and liabilities and owners' rights are actually closely related, and assets and liabilities and owners' rights also constitute the main structure of the balance sheet, especially on the right side of the balance sheet, half of the liabilities, the bottom is the owner's equity, relatively speaking, the relationship between the three is very very equational, that is, negative assets minus liabilities equals the owner's equity.

Well, so the relationship between the three is closely related, in fact, the assets are some of the economic ** of the enterprise for the enterprise, that is, the money owned by the enterprise, and the liabilities and owner's equity represent the liabilities of the enterprise whose money comes from the first, that is, the enterprise borrows from the outside, and the owner's equity means that the shareholders invest, and the shareholder investment is divided into two parts, one is the original investment of the shareholders, and the second is the value created by the enterprise.

Assets = Liabilities + Owners' Equity This is the accounting identity.

Accounting equation is a mathematical expression that reflects the economic relationship of each accounting element in accounting using mathematical formulas, that is, quantitative relations, also known as accounting equations, accounting balance formulas, and accounting identities. It is the theoretical basis for each accounting entity to set up accounts for double-entry bookkeeping and preparation of accounting statements.

The reason that assets are equal to liabilities plus owners' equity, the company's assets are divided into the investor's identity and the equity formed by investing assets in the enterprise and the equity formed by the identity of the creditor providing assets to the enterprise, in which the liability is the equity formed by the identity of the creditor to the enterprise by providing assets, and the owner's equity is the equity formed by the investor's identity to the enterprise by investing in assets, so assets = owner's equity + liabilities.

Meaning of the formula:

The three accounting elements that reflect the financial position of a business are assets, liabilities, and owners' equity, which make up the balance sheet. Financial status refers to the ** and distribution of the company's operating funds at a certain time. It is generally reflected in the balance sheet and its schedules.

Economic resources that are owned or controlled by the enterprise as a result of past transactions or events that can lead to future economic benefits. Existing obligations of the enterprise arising from past transactions or events that require the enterprise to transfer assets or provide services in the future to settle them, thereby causing an outflow of future economic benefits.

The ownership of the net assets of the enterprise by the enterprise investor includes the capital invested by the enterprise investor in the enterprise, as well as the capital reserve, surplus reserve and undistributed profits of the enterprise.

The assets of a business come from two aspects, the owner's input and borrowing.

Assets = Liabilities + Owners' Equity. This does not mean that assets include liabilities and owners' equity. This can be understood in this way, the ** of assets is liabilities and owners' equity, and the vesting of liabilities and owners' equity finally goes to assets.

Therefore, there are assets, liabilities, and owners' equity accounts in the accounting accounts, and these accounts and sub-accounts under the accounts are like a logical line that indicates where the daily affairs of an enterprise come from and where they go. These three are different modules that can be connected to each other, the ** of the asset account is the liability and owner's equity, and the vesting of the liability and the owner's equity is the asset account.

Liabilities refer to debts repaid within one year or more of a business cycle, including short-term borrowings, notes payable, accounts payable, advance receipts, wages payable, and taxes payable.

Owner's equity refers to the economic interest enjoyed by an enterprise in the assets of the enterprise, and its amount is the balance of assets minus liabilities.

Liabilities refer to the current obligations of an enterprise arising from past transactions or events that are expected to result in the outflow of economic benefits from the enterprise.

Liabilities are essentially economic debts that an enterprise must repay after a certain period of time, and its repayment period or specific amount has been stipulated and restricted by contracts and laws and regulations when they occur or are established, and it is an obligation that an enterprise must perform.

The IASB defines liabilities as current obligations arising from past transactions or events that are expected to result in an outflow of economic benefits from the enterprise. The definition of China's "Accounting Standards for Business Enterprises" is:

Liabilities are liabilities incurred by an enterprise that can be measured in monetary terms and need to be repaid in terms of assets or services.

Creditors' equity refers to current liabilities and long-term liabilities. Owner's equity refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise. The two are linked:

Both reflect the capital of the enterprise, the owners and creditors of the enterprise are the providers of enterprise funds, and the owner's equity and creditor's equity are the right to claim the assets of the enterprise. The difference between the two: (1) The nature is different:

Creditors' rights and interests can be recovered at maturity. (2) Different repayment obligations: creditors' rights and interests require the enterprise to pay off the interest at the specified time and interest rate, and repay the principal when due.

Owner's equity is available. (4) Different measurement characteristics: creditors' equity can be directly measured separately, while owner's equity can generally not be directly measured.

5) The size of the risk and the return are different: the risk of creditors' equity is small, and the return is small. Owner's equity is risky and yieldive.

Article 7 of the Enterprise Bankruptcy Law of the People's Republic of China provides that a debtor may file an application for reorganization, reconciliation or bankruptcy liquidation with the people's court under the circumstances provided for in Article 2 of this Law. If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor. Where an enterprise legal person has been dissolved but has not been liquidated or has not been liquidated, and its assets are insufficient to pay off its debts, the person who bears the responsibility for liquidation in accordance with law shall apply to the people's court for bankruptcy liquidation.

Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China Article 2 If an enterprise legal person is unable to pay off its debts when due, and its assets are insufficient to pay off all its debts or it obviously lacks the ability to pay off its debts, it shall liquidate its debts in accordance with the provisions of this Law. Where an enterprise legal person has the circumstances provided for in the preceding paragraph, or there is a clear possibility of losing solvency, it may carry out reorganization in accordance with the provisions of this Law.