Assets: Assets are physical as well as intangible resources of the business which are kept to provide future economic benefits. Liabilities: Liabilities are dues or amount payable by the business. Equity: Equity represents the sum of capital and profits/ loss earned by the business owners. To classify: The given accounts as an asset (A), liability (L), equity (EQ) account, revenue (R), or expense (E) account.

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Chapter 2, Problem 3QS

Summary Introduction

Concept Introduction:

Assets: Assets are physical as well as intangible resources of the business which are kept to provide future economic benefits.

Liabilities: Liabilities are dues or amount payable by the business.

Equity: Equity represents the sum of capital and profits/ loss earned by the business owners.

To classify: The given accounts as an asset (A), liability (L), equity (EQ) account, revenue (R), or expense (E) account.

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