Question

For each of the following​ accounts, identify whether that item is an​ asset, liability, or equity account. Account Classification a. Bonds payable b. Equipment c. Accounts payable d. Salaries payable e. Common stock f. Retained earnings g. Cash h. Accounts receivable i. Sales revenue j. Inventory

Answer 1

Answer:

a. Bonds payable   Liability account

b. Equipment   Asset account

c. Accounts payable    Liability account

d. Salaries payable   Liability account

e. Common stock   Equity account

f. Retained earnings    Equity account

g. Cash   Asset account

h. Accounts receivable   Asset account

i. Sales revenue   Equity account

j. Inventory  Asset account

Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.