Match each account or description on the left with the appropriate classification on the right. v Discount on bonds payable A. Expense v Common stock B. Owners' equity v Prepaid insurance C. Contra-liability v Retained earnings D. Asset v Income taxes owed but not yet paid E. Liability v Cost of goods sold v Prepaid insurance that is used up during a period v Amounts deposited in a checking account v Inventory v Bonds payable

Match each account or description on the left with the appropriate classification on the right. v Discount on bonds payable A. Expense v Common stock B. Owners' equity v Prepaid insurance C. Contra-liability v Retained earnings D. Asset v Income taxes owed but not yet paid E. Liability v Cost of goods sold v Prepaid insurance that is used up during a period v Amounts deposited in a checking account v Inventory v Bonds payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Match each account or description on the left with the appropriate classification on the right.
v Discount on bonds payable
A. Expense
v Common stock
B. Owners' equity
v Prepaid insurance
C. Contra-liability
v Retained earnings
D. Asset
v Income taxes owed but not yet paid
E. Liability
v Cost of goods sold
v Prepaid insurance that is used up during a period
v Amounts deposited in a checking account
v Inventory
v Bonds payable
arch

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