Question

Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an assest, liability, revenue, or expense

1) accounts receivable
2) equipment
3) fees earned

Answer 1

Accounts Receivable is an asset, Equipment is also an asset, and Fees Earned is a revenue account.

Step-by-step explanation:

1) Accounts Receivable is an asset because it represents the amount of money that customers owe to the business for products or services already delivered.

2) Equipment is also an asset because it represents the physical property owned by the business that has long-term value and can be used to generate revenue.

3) Fees Earned is a revenue account because it represents the income generated by the business from providing goods or services to its customers.