Using the Following List of Accounts and Identification Letters a Through

question 54

Essay

Using the following list of accounts and identification letters A through J for Homer's Management Co., enter the type of account and its normal balance into the table below. The first item is filled in as an example:
$\begin{array}{ll}\text { A. Homer, Capital } & \text { F. Prepaid Rent } \\\text { B. Interest Payable } & \text { G. Advertising Expense } \\\text { C. Land } & \text { H. Unearned Rent Revenue } \\\text { D. Homer, Withdrawals } & \text { I. Commissions Earned } \\\text { E. Fees Earned } & \text { J. Notes Receivable }\end{array}$
$$\begin{array} { l | c | c | c | c | c } &{ \text { Type of Account } } &&& { \text { Normal Bal ance } } \\\hline & \text { Astst } & \text { Liability } & \text { Equity } & \text { Debit } & \text { Credit } \\\hline \text { A } & & & \text { X } & & \text { X } \\\hline \text { B } & & & & & \\\hline \text { C } & & & & & \\\hline \text { D } & & & & & \\\hline \text { E } & & & & & \\\hline \text { F } & & & & & \\\hline \text { G } & & & & & \\\hline \text { H } & & & & & \\\hline \text { I } & & & & & \\\hline \text { J } & & & & & \\\hline\end{array}$$

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Definitions:

Sensitivity Analysis

A method employed to ascertain the effects of varying an independent variable on a specific dependent variable, given certain presuppositions.

Fixed Costs

Expenses that remain unchanged regardless of the amount of goods produced or sold, staying fixed amidst variations in business operations.

Sensitivity Analysis

is a technique used to determine how different values of an independent variable will affect a particular dependent variable under a given set of assumptions.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.