For Each of the Accounts in the Following Table (1)

question 143

Essay

For each of the accounts in the following table (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account. $$\begin{array} { | l | l | l | } \hline & \text { Account Type } & \text { Normal Balance } \\\hline \text { a. Wages Experse } & & \\\hline \text { b. Accounts Receivable } & & \\\hline \text { c. Commissions Eamed } & & \\\hline \text { d. Salaries Payable } & & \\\hline \text { e. Common Stock } & & \\\hline \text { f. Unearned Advertising Revenue } & & \\\hline \text { E. Salaries Expense } & & \\\hline \text { H. Magazine Subscription Revenue } & & \\\hline \text { i. Dividends } & & \\\hline \text { j. Prepaid Insurance } & & \\\hline\end{array}$$

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Definitions:

Correlation

The tendency of two variables to move together.

Two-asset Portfolio

It is a financial portfolio comprising two different assets, aimed at diversifying investment risk.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.