Question

g Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item. 1. Rent Expense 2. Equipment 3. Accounts Payable 4. Common Stock 5. Insurance Expense 6. Cash 7. Accounts Receivable 8. Retained Earnings 9. Service Revenue 10. Notes Payable

Answer 1

Answer:

For the items listed below, indicate whether the item is an asset, liability, income statement or stockholders' equity item

1) Rent expense - Expense (Income statement)

2) Equipment - Asset

3) Account payable - Liability

4) Common stock - Stockholder's equity

5) Insurance Expense - Expense (Income statement)

6) Cash - Asset

7) Account receivable - Asset

8) Retained earnings - Stockholder's equity

9) Service revenue - Income (Income Statement)

10) Notes payable - Liability

Explanation:

Items in the financial statement can be classified as Income, Expense, Asset, Liability or Equity