For Each Account Listed,identify the Category in Which It Would

question 175

Essay

For each account listed,identify the category in which it would appear on a classified balance sheet.
$$\begin{array} { | l | l | l | } \hline&{ \text { Account } } &{ \begin{array} { c } \text { Location on a } \\\text { Classified Balance Sheet }\end{array} } \\\hline \text { a } & \text { Smith, Capital } & \\\hline \text { b } & \text { Accumulated Depreciation - } & \\&\text { Equipment }\\\hline \text { c } & \text { Notes Payable (due in two years) } & \\\hline \text { d } & \text { Unearned Revenue (short-term) } & \\\hline \text { e } & \text { Salaries Payable } & \\\hline \text { f } & \text { Accounts Receivable } & \\\hline \text { g } & \text { Trademark } & \\\hline \text { h} & \text { Prepaid Rent (prepaid for six } & \\& \text { months)}\\\hline\end{array}$$

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.

Wage Increase

An upward adjustment in the salary or earnings paid to an employee.

Utility Maximizing

Acting in a way to achieve the highest level of satisfaction possible with available resources.

Demand For Labor

The total amount of labor that employers want to hire at various wage rates, contingent on factors such as technology, the price of the goods being produced, and the availability of other inputs.