Chapter 3, Problem 3.5E

Balance Sheet Accounts and Their Use

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.

Cash

Prepaid Asset

Investments

Taxes Payable

Preferred Stock

Accounts Receivable

Land

Accounts Payable

Retained Earnings

Notes Receivable

Buildings

Notes Payable

Common Stock

____________________ 1. A written obligation to repay a fixed amount, with interest, at some time in the future

____________________ 2. Twenty acres of land held for speculation

____________________ 3. An amount owed by a customer

____________________ 4. Corporate income taxes owed to the federal government

____________________ 5. Ownership in a company that allows the owner to receive dividends before common shareholders receive any distributions

____________________ 6. Five acres of land used as the site for a factory

____________________ 7. Amounts owed on an open account to a vendor, due in 90 days

____________________ 8. A checking account at a bank

____________________ 9. A warehouse used to store equipment

____________________ 10. Claims by the owners on the undistributed net income of a business

____________________ 11. Rent paid on an office building in advance of use of the facility