Explanation Classification of accounts Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue. The following belong to the assets account: Accounts Receivable Prepaid Cash Land Supplies Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business. The following belong to the liabilities account: Accounts Payable Salaries payable Notes payable Income tax payable Unearned rent Revenue: Revenue is known as “Top line” because it appears very top on the income statement of the company. It is used to imply profits or net income (bottom line) of the company by subtracting the total expenses from total revenues. The following belong to the revenue account Rent revenue Fees earned Service revenue Expense: Expense is the cost borne by a company to produce and sell the goods and services to the customers...

14th Edition

ISBN: 9781305088436

Author: Carl Warren, Jim Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Chapter 4, Problem 2E

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Identify each account would appear as (a) assets, (b) liabilities, (c) revenue or (d) expense.

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Chapter 4, Problem 1E

Chapter 4, Problem 3E

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Chapter 4 Solutions

Financial Accounting

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Identify each account would appear as (a) assets, (b) liabilities, (c) revenue or (d) expense.

Solution Summary: The author explains that each account would appear as assets, liabilities, revenue, or expense. Assets refer to the resources owned by the business, which generate revenue.

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Identify each account would appear as (a) assets, (b) liabilities, (c) revenue or (d) expense.

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Chapter 4 Solutions