MODULE 2 HOMEOWRK: Asset, Liability or Equity Accounts Please tell me whether the following accounts are Assets, Liabilities, or Equity. Also pleaes explain why. 1) Interest Payable 2) Furniture and Fixtures 3) Inventory 4) Additional paid-in-capital 5) Accounts Payable 6) Patents and Copyrights 7) Short Term Investments 8) Interest Payable 9) Furniture and Fixtures 10) Patents and Copyrights 11) Wages Payable 12) Retained Earnings 13) Cash14) Land 15) Buildings 16) Taxes Payable 17) Interest Receivable 18) Smith, Capital 19) Accounts Receivable 20) Smith, Drawings
MODULE 2 HOMEOWRK: Asset, Liability or Equity Accounts
Please tell me whether the following accounts are Assets, Liabilities, or Equity. Also pleaes explain why.
1) Interest Payable
2) Furniture and Fixtures
3) Inventory
4) Additional paid-in-capital
5) Accounts Payable
6) Patents and Copyrights
7) Short Term Investments
8) Interest Payable
9) Furniture and Fixtures
10) Patents and Copyrights
11) Wages Payable
12)
13) Cash
14) Land
15) Buildings
16) Taxes Payable
17) Interest Receivable
18) Smith, Capital
19) Accounts Receivable
20) Smith, Drawings
Account: A record, which documents or records the changes in assets, liabilities, or equity for a particular period, are referred to as an account.
Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.
Long-term liabilities: The debt obligations owed by a company to creditors and suppliers and could be paid in more than a year are referred to as long-term liabilities.
Current liabilities: The debt obligations owed by a company to creditors and suppliers and could be paid within the year are referred to as current liabilities.
Owner's equity: It the net worth of company that is available to the shareholders after paying back the liabilities of the company.
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