Question

Betech Inc. has $50,000 in its bank account and $3,000 worth of goods in its warehouse. What is this amount ($53,000) known as in accounting terms?

Answer 1

Answer: It is known as "Assets".

Step-by-step explanation:

Since we have given that

Amount in its bank account = $50000

Amount worth of goods in its warehouse = $3000

Total amount is given by

$\ 50000+\ 3000\\\\=\ 53000$

So, According to "Accounting equation":

It is considered in "Assets " in accounting terms.

Assets contains all amounts related to bank account and worth of goods too.

Hence, it is known as "Assets".

Answer 2

The balance in the bank account and the worth of goods in the warehouse are included under assets so the total amount of 53,000 known as assets