The Account Titles to Be Responded to Are Provided in No

question 119

Short Answer

The account titles to be responded to are provided in no particular order. Assume that all accounts have normal balances according to whether the account is increased by a debit or increased by a credit.

Required:

In column A, indicate whether a debit will:

1. Increase the account balance, or
2. Decrease the account balance.

In column B, classify each account according to the following scheme. For contra accounts, indicate the classification of the account to which it relates.

1. A current asset in the balance sheet.
2. A noncurrent asset in the balance sheet.
3. A current liability in the balance sheet.
4. A long-term liability in the balance sheet.
5. A permanent equity account in the balance sheet.
6. A revenue account in the income statement.
7. An expense account shown in the income statement.
8. Account does not appear in either the balance sheet or the income statement.


-Property taxes payable

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Definitions:

Period's End Assets

The total value of all assets that a company owns at the end of a given financial reporting period.

Patent

A form of intellectual property that gives its holder the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling public disclosure of the invention.

Discovery

Discovery in a general context refers to the process of uncovering or finding something new. In a legal context, it refers to the pre-trial phase in a lawsuit where parties can obtain evidence from one another.

Intellectual Property

encompasses creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.