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. Patents
e. Rent Payable
f. Furniture
g. Notes Payable
h. Owner, Capital
i. Utilities Expense

Answer 1

Answer:

Asset is what a business owns anv control and its use generate future economic benefits.

Liability is a present obligation of an entity arising from past events, the settlement which will lead to an outflow of economic benefits.

Equity is the residual interest in an entity after its liabilities have been deducted from assets.

Revenue is income arising from the ordinary activities of a business

Expense arises in the morning course of activities

a. Advertising Expense - expense

b. Rent Revenue - revenue

c. Rent Receivable - asset

d. Patents - asset

e. Rent Payable - liability

f. Furniture - asset

g. Notes Payable - liability

h. Owner, Capital- equity

i. Utilities Expense - expense

Explanation:

a. Advertising Expense - expense

b. Rent Revenue - revenue

c. Rent Receivable - asset

d. Patents - asset

e. Rent Payable - liability

f. Furniture - asset

g. Notes Payable - liability

h. Owner, Capital- equity

i. Utilities Expense - expense