The value of assets purchased on credit should be included on the asset side of your personal balance sheet.

Question

Quizplus · Accepted Answer

When assets are purchased on credit, it means you have an obligation to pay back the debt in the future. However, at the time of purchase, the asset belongs to you and should be included on the asset side of your personal balance sheet. The liability for the debt should be included on the liability side of the balance sheet.

The Value of Assets Purchased on Credit Should Be Included