For Each Account Listed Identify the Category It Belongs To,the

question 37

Essay

For each account listed identify the category it belongs to,the normal balance (debit or credit),and the financial statement the account appears.
$$\begin{array} { | l | c | c | c | } \hline \text { Account } & \text { Category } & \text { Normal Balance } & \begin{array} { c } \text { Financial } \\\text { Statement }\end{array} \\\hline \text { 0. Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } \\\hline \text { 1. Depreciation Expense } & & & \\\hline \text { 2. Accumulated } & & & \\\hline \text { Depreciation } & & & \\\hline \text { 3 Wages Expense } & & & \\\hline \text { 4. Office Supplies } & & & \\\hline \text { 5. Office Supplies Expense } & & & \\\hline \text { 6. Wages Payable } & & & \\\hline \text { 7. Prepaid Rent } & & & \\\hline\end{array}$$

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or a decline in value.

Gross Investment

The total amount of money spent on new capital assets, such as buildings and machinery, without deducting for depreciation.

Capital Stock

Capital stock represents the sum of all physical and financial assets owned by a company or country, used to facilitate production and operations.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.