Question

In each case, identify whether the item is an asset, liability, stockholders' equity, revenue, or expense item.

Answer 1

Answer:

a.asset

b.stockholders' equity

c.expense

d.expense

e.asset

f.asset

g.asset

h.asset

i.revenue

j.liability

k.revenue

l.expense

Explanation:

Assets are economic resources arising from past events, that result in the flow of economic benefits in the future.

Liabilities are present obligation of an entity arising from past event, that result in the outflow of economic benefits.

Revenues and Incomes are increases in Assets and decreases in liabilities.

Expenses are decreases in Assets and increases in liabilities

Equity is the residue that results after deducting liabilities from assets.