Chapter 2, Problem 3E

To determine

Asset:

An asset is a resource that an entity owns and holds in order to fetch economic benefits to the company from the uses of such resources. An asset will always have a debit balance.

Liability:

A liability is a claim by outsiders against the company’s resources that are incurred in the ordinary course of business. A liability account will always have a credit balance.

Equity:

Equity is the owner’s investment or the capital invested into the business. It can be termed often as the difference between the assets and the liabilities. An equity account will always have a credit balance.

To identify:

The items in serial number 1 to 5 that matches the descriptions a to e.