For Each of the Following Accounts,indicate Whether the Account Is

question 107

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For each of the following accounts,indicate whether the account is an asset (A),liability (L),or stockholders' equity (SE)and whether the account usually has a debit (Dr)or credit (Cr)balance. $\begin{array}{l}\begin{array}{l}\text { 1. Inventory } \\\text { 2. Accounts receivable } \\\text { 3. Contributed Capital } \\\text { 4. Prepaid expenses } \\\text { 5. Wages payable } \\\text { 6. Property and equipment } \\\text { 7. Retained Earnings } \\\text { 8. Accounts payable }\end{array}\begin{array}{rl}\mathrm{SE}, \mathrm{Cr} & 7 \\\mathrm{A}, \mathrm{Dr} & 1 \\\mathrm{SE}, \mathrm{Cr} &3 \\\mathrm{~L}, \mathrm{Cr} & 8 \\\mathrm{~A}, \mathrm{Dr} & 2 \\\mathrm{~A}, \mathrm{Dr} & 6 \\\mathrm{~L}, \mathrm{Cr} & 5 \\\mathrm{~A}, \mathrm{Dr} & 4\end{array}\end{array}$

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Definitions:

Supplies Cost

The cost associated with the items and materials used in the operation of a business.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Cost Formula

An equation used to predict costs, often incorporating fixed and variable components.

Supplies Cost

The total expense incurred for items used in the operation of a business but not directly tied to a specific product or service, such as office supplies or cleaning materials.