Final answer:
Equipment is an asset, Utilities Incurred and Paid is an expense, Unearned Revenue is a liability, Sales is revenue, and Common Stock is stockholders' equity. T-accounts help visualize these relationships on a company's balance sheet.
Step-by-step explanation:
To determine whether each of the following accounts is an asset, liability, revenue, expense, or stockholders' equity account, we can use the concepts of accounting: Equipment - This is an asset because it is something of value that the company owns and can use for its operations. Utilities Incurred and Paid - This is an expense since it represents the cost of utilities used by the company and has already been paid. Unearned Revenue - This is a liability, as it represents money received by the company for services or products that have not yet been delivered.
Sales - This is a revenue because it represents the income that the company earns from selling goods or services. Common Stock - This is part of stockholders' equity, as it represents the ownership interests in the company. In summary, a T-account helps visualize the relationship between a company's assets and its liabilities and net worth. A bank's balance sheet, for example, lists assets like cash reserves and securities, and liabilities like customer deposits, with the net worth being the difference between total assets and total liabilities.