Identify the Correct Classification for the Following 4 Ledger Accounts

question 2

Multiple Choice

Identify the correct classification for the following 4 ledger accounts in the chart of accounts:
1.prepaid insurance
2.accrued wages
3.Depreciation
4.cost of goods sold

• A)1 expense, 2 liability, 3 expense, 4 expense
• B)1 asset, 2 liability, 3 expense, 4 expense
• C)1 asset, 2 liability, 3 expense, 4 asset
• D)1 asset, 2 liability, 3 liability, 4 revenue.

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Definitions:

Calculated

Determined or deduced by mathematical methods or processes.

Directly Measured

Refers to values or quantities obtained through direct observation or instrumentation, without reliance on estimation or indirect calculation.

Total Lung Capacity

The maximum amount of air the lungs can hold, encompassing the vital capacity plus residual volume.

Inspiratory Capacity

The maximum amount of air a person can inhale after a normal exhalation, measuring lung function.