Question

You are an accountant at the corporate office of a major fast food chain. In a...

You are an accountant at the corporate office of a major fast food chain. In a short essay, describe examples of your firm’s assets, liabilities, equity, and net assets. Give three examples of expenses that your firm regularly incurs.

Homework Answers

Answer #1

Fast food chain have large food processor, delivery vehicle, furniture and fixtures, licence and patents in their name, closing stock of material.

In liabilities section they have long term loan from financial institution, accounts payable, lease of land payable, wages of delivery guys payable.

In equity section they may have equity share capital, retained earning, premium.

Example of expense they regularly incur are -

1. Purchase cost of buying the food material like sauces, bread etc.

2. Salaries and wages payable to employee and delivery guys.

3. They frequently make advertisement to increase their sales.

4. Printing and other miscellaneous charges like pizza boxes printed with company logo etc.

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