Consider the Following Accounts and Identify Each as an Asset

question 201

Essay

Consider the following accounts and identify each as an asset (A),liability (L),or equity (E).
$$\begin{array} { | l | l | } \hline \text { Owner, Capital } &\quad\quad\quad\quad \\\hline \text { Accounts Receivable } & \\\hline \text { Owner, Withdrawals } & \\\hline \text { Service Revenue } & \\\hline \text { Prepaid Rent } & \\\hline\end{array}$$

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Income Statement

A financial document summarizing a company's revenues, expenses, and profit over a specific period, reflecting its operational performance.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholder equity at a specific point in time.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down into operating, investing, and financing activities.