Mastery Module Week 2 Part 2.1

Mastery Module Week 2 Part 2.1 - [ Type text] [Type text]...

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[Type text] [Type text] HINTS FOR LEARNING EXERCISE A CLASSIFYING ACCOUNTS 1) Assets are anything with economic value to the company that could theoretically be converted to cash. 2) Liabilities create obligations for the company to do something in the future. 3) Owner’s equity accounts include capital contributions from investors, and revenue, and expense items. 4) Revenue and expense accounts fall under owner’s equity. Make sure you have your payables and receivables straight. Receivables have economic value to the company, while payables create an obligation for the company to pay cash in the future. Please classify the following accounts as Assets, Liabilities, or Owners Equity, Accounts: Cash: Assets Accounts Payable: Liabilities Common Stock: Owner’s Equity Sales Revenue: Owner’s Equity Cost of Goods Sold: Owner’s Equity Accounts Receivable: Assets Equipment: Assets Wages Payable: Liabilities Wage Expense: Owner’s Equity Part B-1 of Module 2.1 Hint for Part B-1 of Module 2.1
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Mastery Module Week 2 Part 2.1 - [ Type text] [Type text]...

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