Question

On January 1, 2020, Pina Company purchased 10 _______.

1) assets
2) liabilities
3) equity
4) inventory

Answer 1

On January 1, 2020, Pina Company purchased 10 assets, which are items of value owned by a company.

Step-by-step explanation:

On January 1, 2020, Pina Company purchased 10 assets. An asset is an item of value that a firm or an individual owns. The following information: Assets - reserves 30, bonds 50, and loans 50; Liabilities - deposits 300 and equity 30, can be found on a company's balance sheet, an accounting tool that lists assets and liabilities. Considering that equity represents the owner's share in the company and liabilities are the company's debts or obligations, the term assets is appropriate since it refers to resources owned by the company with the expectation that they will bring future economic benefits.