Questions and Answers
What is the account classification of Accounts Payable?
Current Liability
What is the account classification of Accounts Receivable?
Current Asset
What is the account classification of Accumulated Depreciation?
Contra (Fixed) Asset
What is the account classification of Accumulated Depletion?
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What is the account classification of Advertising Expense?
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What is the account classification of Allowance for Doubtful Accounts?
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What is the account classification of Buildings?
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What is the account classification of Capital?
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What is the account classification of Cash?
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What is the account classification of Cost of Merchandise/Goods Sold?
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What is the account classification of Depletion Expense?
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What is the account classification of Drawings?
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What is the account classification of Equipment?
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What is the account classification of Insurance Expense?
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What is the account classification of Interest Expense?
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What is the account classification of Interest Receivable?
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What is the account classification of Interest Revenue?
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What is the account classification of Land?
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What is the account classification of Merchandise Inventory?
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What is the account classification of Notes Payable?
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What is the account classification of Notes Receivable?
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What is the account classification of Petty Cash?
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What is the account classification of Prepaid Insurance?
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What is the account classification of Prepaid Rent?
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What is the account classification of Rent Expense?
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What is the account classification of Rent Revenue?
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What is the account classification of Salaries Expense?
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What is the account classification of Salaries Payable?
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What is the account classification of Sales?
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What is the account classification of Sales Discounts?
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What is the account classification of Sales Returns and Allowances?
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What is the account classification of Sales Tax Payable?
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What is the account classification of Supplies?
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What is the account classification of Supplies Expense?
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What is the account classification of Transportation Out?
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What is the account classification of Unearned Rent?
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What is the account classification of Utilities Expense?
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Study Notes
Current Liabilities
- Accounts Payable is classified as a current liability.
- Notes Payable may be classified as either current or long-term liability.
- Salaries Payable and Sales Tax Payable are also current liabilities.
- Unearned Rent is recognized as a current liability.
Current Assets
- Accounts Receivable is identified as a current asset.
- Cash and Petty Cash are examples of current assets.
- Interest Receivable, Merchandise Inventory, and Supplies fall under current assets.
- Prepaid Insurance and Prepaid Rent are recorded as current assets.
Contra Assets
- Accumulated Depreciation is categorized as a contra fixed asset.
- Accumulated Depletion is similarly classified as a contra fixed asset.
- Allowance for Doubtful Accounts serves as a contra current asset.
Operating Expenses
- Advertising Expense is classified as an operating expense.
- Depletion Expense, Insurance Expense, Rent Expense, Salaries Expense, and Utilities Expense are all categorized as operating expenses.
- Transportation Out is recognized as an operating expense as well.
Fixed Assets
- Buildings and Equipment are classified as fixed assets.
- Land is also categorized as a fixed asset.
Owner's Equity
- Capital is accounted for within owner's equity.
- Drawings represent another component of owner's equity.
Other Income and Expenses
- Interest Revenue is classified as other income.
- Interest Expense falls under other expenses.
- Rent Revenue is also categorized as other income.
Contra Revenue
- Sales Discounts and Sales Returns and Allowances are identified as contra revenue accounts.
Revenue
- Sales are recognized as revenue.
Summary of Assets and Expenses
- Current assets encompass various classifications including cash, receivables, and inventory.
- Fixed assets represent long-term investments in property and equipment.
- Operating expenses reflect the costs of running a business.
- Owner's equity measures the owner's claim after liabilities are deducted from assets.
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Description
Test your knowledge of key accounting terms with this quiz. Focus on account classifications such as assets, liabilities, and contra assets. Perfect for students in accounting classes or those preparing for exams.
