Question

The following table lists a variety of accounts commonly seen in financial statements. Identify whether each account appears on the balance sheet as an asset, liability, or equity account; or whether it appears on the income statement as a revenue or expense.

Account Asset Liability Equity Revenue Expense
Accounts Payable
Property, plant, and equipment
Inventories O Long-term debt
Cost of goods sold Retained earnings
Research and development
Prepaid expenses
Common stock
Accounts Receivable

Answer 1

Particulars Type Appearance

Account Payable Liability Balance Sheet

Property, plant and equipment Asset Balance Sheet

Inventories Asset Balance Sheet

Long term Debt Liability Balance Sheet

Cost of Goods Sold Expense Income statement

Retained Earnings Equity Balance Sheet

Research and Development Expense Income statement

Prepaid Expenses Asset Balance Sheet

Common Stock Equity Balance Sheet

Account Receivable Asset Balance