Asked by abdulbaset charsi on Jun 08, 2024
Verified
Classify each of these items as an asset (A) liability (L) or owner's equity (OE). ‾\underline{\quad\quad} 1. Accounts receivable
‾\underline{\quad\quad} 2. Accounts payable
‾\underline{\quad\quad} 3. Owner's Capital
‾\underline{\quad\quad} 4. Supplies
‾\underline{\quad\quad} 5. Utilities expense
‾\underline{\quad\quad} 6. Cash
‾\underline{\quad\quad} 7. Notes payable
‾\underline{\quad\quad} 8. Equipment
Owner's Capital
The amount of money and other assets owned by a business's owner after all liabilities have been deducted; also known as owner's equity.
Accounts Receivable
Amounts due from clients to a business for goods or services that have been supplied or rendered but haven't been settled.
Accounts Payable
Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.
- Acquire knowledge to distinguish and allocate accounts as assets, liabilities, or proprietor's equity.
Verified Answer
CE
Learning Objectives
- Acquire knowledge to distinguish and allocate accounts as assets, liabilities, or proprietor's equity.