Question

Asset, Liability, and Owner's Equity Items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) owner's equity: a. Accounts receivable b. Accounts payable c. Cash d. Fees earned e. Land f. Rent expense g. Supplies

Answer 1

Answer:

Explanation:

We know that

The balance sheet items classify the assets and liabilities in the categorized balance sheet into various types Including assets are divided into fixed assets, current assets, and intangible assets.

Liabilities are likewise divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet which means

Total assets = Total liabilities + shareholder equity

And, the income statement reports only total revenues and total expenses

So, the categorization is shown below:

a. Accounts receivable = Current asset

b. Accounts payable = Current liabilities

c. Cash = Current asset

d. Fees earned = Revenue shown in the income statement i.e reflected in owner's equity

e. Land = Fixed asset

f. Rent expense = Expense shown in the income statement i.e reflected in owner's equity

g. Supplies = Current asset