Question

As described in a recent annual report, Digital Diversions, Inc (DD designs, develops, and distributes video games for computers and advanced game systems. Di has been operating for only one full year Required: For each of the folowity accounts from Dos recent balance sheet complete the folowing table indicate whether the account is classified as a current asset (CA), noncurrent asset INCA, current ability (CL), noncurrent liability INCLI. Or stockholders' equity (SE) and whether the account usually has a debit or credit ch balance. A Balance She Dea d Retained caring matere in the years)

Answer 1

The classification is provided below-

Balance Sheet Classification Land NCA Retained Earnings Notes Payable (due in 3 year) NCL Accounts Receivables CA Supplies CA Common Stock Equipment NCA Accounts Payable Cash CA Income Tax Payable Debit or Credit Balance Debit Credit Credit Debit Debit Credit Debit Credit Debit Credit