10.0k views
2 votes
List the titles of the asset, liability and equity accounts that you would see on the balance sheets of both manufacturing and merchandising organizations.

1 Answer

4 votes

Final answer:

Balance sheets of both manufacturing and merchandising organizations will feature asset accounts like Cash and Inventory, liability accounts such as Accounts Payable and Long-term Debt, and equity accounts including Common Stock and Retained Earnings. These are represented in a T-account, which is a two-column format showing assets on one side and liabilities and equity on the other.

Step-by-step explanation:

On balance sheets of both manufacturing and merchandising organizations, you would typically see the following types of accounts under assets, liabilities, and equity:

  • Asset accounts might include Cash, Accounts Receivable, Inventory, Prepaid Expenses, Property, Plant, and Equipment.
  • Liability accounts could include Accounts Payable, Accrued Expenses, Notes Payable, Taxes Payable, and Long-term Debt.
  • Equity accounts often feature Common Stock, Retained Earnings, and Paid-in Capital.

A T-account is a visual representation of these accounts on a balance sheet, shown in a two-column format with a vertical line down the middle and a horizontal line under the column headings for "Assets" and "Liabilities," forming a T-shape. This format provides a clear overview of a company's financial standing, reflecting the relationship between assets, liabilities, and shareholders' equity, which comprises bank capital.

User Arount
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.