Identify the correct classification for the following four ledger accounts in the chart of accounts:
A) 1 expense,2 liability,3 expense,4 expense.
B) 1 asset,2 liability,3 expense,4 expense.
C) 1 asset,2 liability,3 expense,4 asset.
D) 1 asset,2 liability,3 liability,4 revenue.

Question

Identify the correct classification for the following four ledger accounts in the chart of accounts: 
A) 1 expense,2 liability,3 expense,4 expense. 
B) 1 asset,2 liability,3 expense,4 expense. 
C) 1 asset,2 liability,3 expense,4 asset. 
D) 1 asset,2 liability,3 liability,4 revenue.

Quizplus · Accepted Answer

1 is an asset account, as it represents Office Supplies.

2 is a liability account, as it represents Accounts Payable.

3 is an expense account, as it represents Rent Expense.

4 is an expense account, as it represents Utilities Expense.

Identify the Correct Classification for the Following Four Ledger Accounts