Select the account types for these items:
$\bullet$Repairs and maintenance
$\bullet$Accounts receivable
$\bullet$Drawings
$\bullet$Wages
A) Expense, asset, equity, equity
B) Asset, liability, equity, equity
C) Expense, asset, equity, expense
D) Expense, liability, asset, expense

Question

Quizplus · Accepted Answer

Repairs and maintenance are classified as an expense because they are costs incurred in the process of generating revenue. Accounts receivable is an asset because it represents money owed to the company that is expected to be received. Drawings are reductions in equity because they represent the owner's withdrawals from the business for personal use. Wages are classified as an expense because they are costs incurred in the process of generating revenue.

Select the Account Types for These Items ∙\bullet∙ Repairs and Maintenance ∙\bullet∙

Select the Account Types for These Items $\bullet$ Repairs and Maintenance $\bullet$