Question

Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense Liability Stockholders' equity Stockholders' equity

Answer 1

a) Account payable is a liab because we have to pay it.

b) Account receivable is an asset because will receive future economic benefits from it.

c)Fees earned is Stock Holders equity because it is part of Revenue and revenue increases Stock Holders equity.

d) Supplies are Assets because it is a part of the inventory.

e) Supplies expenses is Stock Holders equity because it is expense and expense decrease Stock holders equity.

f) Utility expenses is Stock Holders equity because it is expense and expense decrease Stock holders equity.

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Answer 2