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For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders' equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders' equity as (f) a dividend.Account Classifications Accounts Rent expenseInterest1. _____ Rent expense Cost of rent.2. _____ Interest revenue Interest earned on saving accounts.3. _____ Dividends Cash payments to stockholders4. _____ Land Land used for operations5. _____ Accounts payable Amounts owned for supplier

Respuesta :

Answer:

1. e

2. d

3. f

4. a

5. b

Explanation:

1. Rent expense - Cost of rent - It is an expense which is an expense that is incurred during the course of operations of the business.

2. Interest revenue - Interest earned on the saving accounts - It is a Revenue, which is the revenue or the profit that is earned during the course of operations of the business.

3. Dividends- Cash payment to stockholders - It will be classified as Dividend, this is dividend which is paid out of profits of the company to stockholders.

4. Land - Land used for operation - It is classified or recognized as the Asset, as it is a resource which is owned by the company or business and could expect future benefits for its use.

5. Accounts Payable - Amounts owned for supplier - It is acknowledged as the liability, because it is an obligation or liability owed by the business to creditors.

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