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Homework answers / question archive / A spare tire was stolen from the company truck which was not insured
A spare tire was stolen from the company truck which was not insured. What are the two accounts that would be affected? Are they categorize as assets, liability or expenses?
A spare tire stolen would be considered as expenses as it reduces the inventory assets. You need to be reporting an expense with the entry like loss as a result of theft. This theft expense would be reducing the income, which would, in turn, diminish the equity of the owner.
