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Question 1

Classify each of the following accounts (asset, current asset, etc.) taken from Faust Company's

balance sheet.

Accounts payable

Accounts receivable


L. Dawn, capital


Salaries payable

Merchandise inventory

Short-term investments (to be sold in 7 months)

Accumulated depreciation—equipment


Land (in use)

Notes payable (due in 2 years)



Prepaid expenses

Top Answer

The following will be the classifications : Accounts payable : Current Liabilities Accounts receivable : Current Assets Cash... View the full answer

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