Question

The following is a list of accounts commonly seen in financial statements. Identify whether each account appears on the balance sheet as an asset, a liability, or an equity account, or whether it appears on the income statement as a revenue or an expense.
a. Accounts Payable
b. Property, Plant. and Equipment
c. Cong-Term Debt
d. Cost of Goods Sold
e. Retained Earnings
f. Research and Development
g. Prepaid Expense
h. Common Stock
i. Accounts Receivable

Answer 1

Answer:

Balance sheet:

Accounts Payable -Liability

Property, Plant. and Equipment -Asset

Long-Term Debt-Liability

Retained Earnings-equity account

Prepaid Expense -Asset

Common Stock -equity account

Accounts Receivable-Asset

Income statement:

Cost of Goods Sold-expense

Research and Development-expense

Explanation:

Property, plant and equipment , accounts receivable and prepaid expenses would appear on the asset side of the balance sheet.

Long-term debt and accounts payable are both liabilities since they are obligations owed to third parties while retained earnings and common stock are both equity account

Lastly,cost of goods sold and research and development cost are expenses in the income statement