Question

A chart of accounts is a list of all ledger accounts and an identification number for each. Identify the following accounts as either an asset (A), liability (L), equity (EQ), revenue (R), or expense (E) account.a. Advertising Expense b. Rent Revenue c. Rent Receivable d. Machinery e. Accounts Payable f. Furniture g. Common Stock h. Utilities Expense

Answer 1

Answer is given below

Explanation:

• Asset is The property means and controls the business owner and its use will generate future financial benefits.
• Liability is the current liability of an organization arising from past events, which is the flow of financial benefit from settlement.
• Equity is the remaining interest in a company because its liabilities are deducted from the assets.
• Revenue means income derived from the normal activities of the business.
• Expense arises at time in the morning activities

S.no Particulars                         Answer

a         Advertisement expense expense

b         rent expense                         expense

c         rent receivable                  Asset

d         Machinery                          Asset

e         Account payable                  Liability

f         Furniture                          Asset

g         common stock                  Equity

h          Utility Expense                  expense