Select the Account Types for These Items

question 45

Multiple Choice

Select the account types for these items:
? Prepaid insurance
? Mortgage
? GST Collected
? Light and power

• A)Expense,liability,liability,equity
• B)Asset,equity,asset,expense
• C)Asset,liability,liability expense
• D)Expense,liability,asset,liability

---

Definitions:

Par Value

A nominal value assigned by the issuer that represents the minimum price at which shares can be issued, often used in the context of stocks or bonds.

Fair Market Value

The estimated price at which an asset or service would exchange hands between a willing buyer and seller, both having reasonable knowledge of the relevant facts.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Common Stock

A type of security representing ownership in a corporation, with holders having a claim on part of the company’s assets and earnings.