12 Questions
What are examples of current assets?
Supplies, prepaid expenses
Which asset type includes long-term investments?
Non-current assets
What is an example of non-current asset?
Land
Which item is classified as a current liability?
Accrued expenses
What are intangible assets?
Franchise and copyright
When do prepaid expenses become expenses?
After being used in operations
What are the two main categories of accounts mentioned in the text?
Assets and Liabilities
Which type of account represents the residual interest in the assets of the entity?
Owner’s Equity
What category do 'Fees earned from providing services' and 'amounts of merchandise sold' fall under?
Income/Revenue
Which account represents the reduction in value of an asset as it is used to generate revenue?
Expenses
What do CURRENT ASSETS refer to?
Assets that are expected to be realized within one year
Which type of asset includes 'CASH' and 'ACCOUNTS RECEIVABLE'?
Current Assets
Learn to identify accounts as assets, liabilities, capital, income, or expenses, and cite examples for each type. Understand the classification of accounts into real/permanent accounts (like assets and liabilities) and nominal/temporary accounts (like expenses and income). Explore major account types such as assets and owner's equity.
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