Classify Each of These Items as an Asset (A), Liability

question 89

Short Answer

Classify each of these items as an asset (A), liability (L), or equity (E)
____1. Accounts receivable
____2. Accounts payable
____ 3. Share capital-ordinary
_____4. Supplies
____ 5. Utiities expense
_____6. Cash
____ 7. Note payable
____8. Equipment

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Definitions:

MPC (Marginal Propensity to Consume)

A measure of the change in consumption resulting from a change in income; specifically, the proportion of additional income that is spent on consumption.

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.

Multiplier Effect

The proportionate increase in final income that results from an injection of spending (initial increase in spending), typically influencing the level of national income and output.

Government Builds

Refer to initiatives or infrastructure projects undertaken by a government to develop or enhance the country's physical assets and services.