Answer to Question #82244 in Accounting for Amaka

Question

In two sentences, state the ways in which capital expenditures are treated in accounts and why.

Answer 1

Net worth is the value of all financial and non-financial assets that are owned, less the total amount of all outstanding obligations. Accordingly, the value of all Worthingtons assets is:

165,000 + 32,000 + 200,000 + 20,000-1,300-3,000 = 412,700 US dollars.