Chapter 2, Problem 2.5ME

Mini-Exercise 2.5

LO 2. 4

Identify accounts by category Listed here are a number of accounts: Land, Common stock, Merchandise inventory, Equipment, Cost of goods sold, Accounts receivable, Interest expense, Supplies, Long-term debt, Cash, Sales, Accounts payable, Buildings, Retained earnings.

Required:

Which of the accounts listed above are not assets? How would you categorize each of these nonasset accounts?