Chapter 2, Problem 2.3E

Classifying Accounts and Their Usual Balances

As described in a recent annual report, Verizon Communications provides wireless voice and data services across one of the most extensive wireless networks in the United States. Verizon now serves more than 100 million customers, making it the largest wireless service provider in the United States in terms of the total number of customers. The following are accounts from a recent balance sheet for Verizon:

(1) Accounts Receivable	(6) Long-Term Investments
(2) Retained Earnings	(7) Plant. Property, and Equipment
(3) Accrued Expenses Payable	(8) Accounts Payable
(4) Prepaid Expenses	(9) Short-Term Investments
(5) Common Stock	(10) Long-Term Debt

Required:

For each account, indicate (I) whether the account is usually classified as a current asset (CA). noncurrent asset (NCA), current liability (CL), noncurrent liability- (NCL), or stockholders’ equity (SE) item and (2) whether the account usually has a debit or credit balance.