Consider the Following Accounts and Identify Each as an Asset

question 105

Essay

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

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Definitions:

State Charter

A legal document issued by a state that grants rights, privileges, and operating terms to a corporation.

Authorized Stock

This refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of stock in the market.

Issued Stock

The number of shares that have been allocated (sold or given) and are held by shareholders, including both public investors and company officers or insiders.