Classification Of Accounts - Calculators R Fun

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Classification Of Accounts - Calculators R Fun - Quiz

Chapter 1
Directions: Classify each account by selecting the correct answer for each item.


Questions and Answers
  • 1. 

    Jones Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    The given term "Jones Payable" refers to an amount of money that Jones owes to someone else. This indicates that it is a liability, as liabilities represent the obligations or debts of a business or individual. Therefore, the correct answer is option 4, which is "Liability".

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  • 2. 

    Business Analyst  Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    Owner's Equity refers to the residual interest in the assets of the entity after deducting liabilities. It represents the owner's claim on the assets of the business. In this case, the correct answer is liability, which refers to the financial obligations or debts of the business.

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  • 3. 

    Prepaid Rent

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Prepaid rent is an advance payment made by a tenant to a landlord for future use of a property. It represents a benefit that the tenant has paid for but has not yet received. As such, it is classified as an asset on the balance sheet. This is because it has future economic value and can be used to generate revenue or provide a future benefit to the tenant. Thus, prepaid rent is correctly categorized as an asset.

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  • 4. 

    Calculator Equipment

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    The given answer is "Asset" because a calculator equipment is considered as an asset. Assets are the resources owned by a company that have economic value and can be used to generate future benefits. Calculator equipment is a tangible asset that can be used by the company for its operations and has a monetary value. Therefore, it falls under the category of assets on a company's balance sheet.

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  • 5. 

    Accounts Receivable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Accounts Receivable is classified as an asset. It represents the amount of money that a company is owed by its customers for goods or services that have been delivered but not yet paid for. As an asset, it has a positive impact on the company's financial position and can be used to generate future cash inflows.

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  • 6. 

    Computer

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    The term "computer" is categorized as an asset. Assets are resources owned by a company or individual that have economic value and can be used to generate future benefits. A computer is a tangible asset that can be used in business operations and has a monetary value. Therefore, it falls under the category of assets.

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  • 7. 

    Office Supplies

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Office supplies are considered assets because they have value and can be used in the business operations. They are tangible items that are expected to provide future benefits to the company. As assets, office supplies are recorded on the balance sheet and are classified as current assets since they are expected to be used or consumed within a year.

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  • 8. 

    Notes Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    Notes Payable is a type of loan or debt that a company owes to a lender. It represents an obligation to repay the borrowed amount in the future. As it involves a liability to the company, it is categorized as a liability on the balance sheet. This liability is separate from the owner's equity, which represents the owner's investment in the business, and from assets, which are resources owned by the company. Therefore, the correct answer is liability.

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  • 9. 

    Calculator Supplies

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    The given question is incomplete and does not provide any context or information to determine the correct answer. Without any additional information, it is not possible to explain why the correct answer is "Asset".

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  • 10. 

    Prepaid Insurance

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Prepaid insurance is considered an asset because it represents an advance payment made by the company for insurance coverage that will be utilized in the future. As the insurance coverage is received and utilized over time, the prepaid insurance amount will be gradually expensed and deducted from the asset category.

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  • 11. 

    Texas Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    The given answer, "Liability," is correct because liabilities represent the debts or obligations of a business. In the context of the given options, Texas Payable is most likely a liability because it suggests an amount that the business owes to someone or another entity. This could include outstanding bills, loans, or other financial obligations that the business is responsible for.

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  • 12. 

    Office Furniture

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Office furniture is considered an asset because it is a valuable item owned by the business that can provide future economic benefits. It is a tangible asset that can be used in the operations of the business and has a monetary value. As an asset, office furniture is recorded on the balance sheet and its value is depreciated over time to reflect its decreasing value.

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  • 13. 

    David Hughes, Capital

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    C. Owner's Equity
    Explanation
    The given answer, Owner's Equity, is the correct option because it represents the residual interest in the assets of an entity after deducting liabilities. It is the amount that belongs to the owners or shareholders of the company. Owner's Equity is calculated by subtracting liabilities from assets and reflects the net worth of the business. Therefore, among the given options, Owner's Equity best describes the category that David Hughes, Capital, Asset, and Liability belong to.

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  • 14. 

    Cash

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Cash is classified as an asset because it represents a valuable resource that the company owns and can use to generate future economic benefits. As an asset, cash is expected to provide future cash inflows to the company, either through direct use or by being exchanged for other assets or services. Therefore, it is recorded on the balance sheet under the asset category.

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  • 15. 

    Buildings

    • A.

      Liability

    • B.

      Asset

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Asset
    Explanation
    In accounting, assets are resources or properties owned by a company or individual that have economic value and can be used to generate future economic benefits. Buildings are tangible assets that can be owned by a company or individual and have value. Therefore, buildings are considered assets.

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  • 16. 

    Truck

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    The term "Truck" represents a physical item that has value and can be owned. In accounting, assets are resources or properties that are owned by a business or an individual and have economic value. Therefore, a truck can be considered as an asset because it is a valuable item that is owned by someone.

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  • 17. 

    Land

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    Land is classified as an asset because it represents a valuable resource that the owner possesses. Assets are resources that have economic value and can be owned or controlled by an individual or organization. Land can be bought, sold, or used to generate income, making it a valuable asset.

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  • 18. 

    Accounts Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    Owner's Equity represents the owner's investment in the business and is not applicable in this context. An asset is a resource owned by the business, such as cash or inventory, and does not represent a liability. Accounts Payable, on the other hand, represents the amount owed by the business to its creditors and is considered a liability. Therefore, the correct answer is liability.

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  • 19. 

    Display Equipment

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    A. Asset
    Explanation
    The given question is asking about the category to which "Display Equipment" belongs. From the options provided, "Asset" is the correct answer. Assets are resources owned by a company that have economic value and can be used to generate future benefits. Display Equipment is a tangible asset that a company owns and can be used to showcase products or services, making it an appropriate categorization under assets.

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  • 20. 

    Mortgage Payable

    • A.

      Asset

    • B.

      Liability

    • C.

      Owner's Equity

    • D.

      Answer option 4

    Correct Answer
    B. Liability
    Explanation
    Mortgage Payable is a type of loan that is used to finance the purchase of property. As it is a loan that needs to be repaid over a period of time, it represents a liability for the borrower. Therefore, the correct answer is liability.

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