Identify the Correct Classification for the Following Five Ledger Accounts

question 11

Multiple Choice

Identify the correct classification for the following five ledger accounts:

• A) 1 asset,2 expense,3 expense,4 asset,5 expense.
• B) 1 asset,2 expense,3 asset,4 expense,5 liability.
• C) 1 asset,2 expense,3 expense,4 asset,5 liability.
• D) 1 expense,2 expense,3 expense,4 expense,5 expense.

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Definitions:

Net Working Capital

The gap between a firm's current assets and its current liabilities, showcasing the business's liquidity and its ability to operate efficiently.

Project Analysis

The process of evaluating the financial viability, stability, and profitability of a project before committing resources.

Sales Increase

A rise in the amount of products or services sold by a company over a specific period, typically signifying growth in business operations.

Operating Cash Flow

A financial metric that indicates the amount of money generated by a company's business operations after accounting for operating expenses.