Asset, Liability, Income, or Expense? Flashcards
Learn which terms are assets, liabilities, income, or expenses
Is ‘Cash in Bank’ an asset, liability, income, or expense?
Asset
Are ‘Sales’ an asset, liability, income, or expense?
Income
Are ‘Organizational Startup Costs’ an asset, liability, income, or expense?
Expense
Are ‘Accounts Receivable’ an asset, liability, income, or expense?
Asset
Is ‘Rent Received’ an asset, liability, income, or expense?
Income
Is ‘Rent Paid’ an asset, liability, income, or expense?
Expense
Are ‘Freight Charges’ an asset, liability, income, or expense?
Expense
Is ‘Amortization’ an asset, liability, income, or expense?
Expense
Is a ‘Note Receivable’ an asset, liability, income, or expense?
Asset
Are ‘Office Supplies Used’ an asset, liability, income, or expense?
Expense
Is ‘Accrued Interest’ an asset, liability, income, or expense?
Accrued Interest can be classified as either a Liability or Income, depending on the context:
- Liability: If the accrued interest is interest payable, meaning it is interest that the company owes but has not yet paid, it is a liability.
- Income: If the accrued interest is interest receivable, meaning it is interest that the company has earned but has not yet received, it is classified as income.
Based on the phrasing of “Accrued Interest” without further context, it typically refers to interest payable, making it a liability.
Is ‘Transportation Equipment’ an asset, liability, income, or expense?
Asset
Is ‘Accrued State Income Tax’ an asset, liability, income, or expense?
Liability
Is a ‘Prepaid Expense’ an asset, liability, income, or expense?
Asset
Is ‘Accounting and Legal’ an asset, liability, income, or expense?
Expense
Are ‘Gross Wages’ an asset, liability, income, or expense?
Expense
Are ‘Utilities’ an asset, liability, income, or expense?
Expense
Are ‘Commissions Received’ an asset, liability, income, or expense?
Income
Is ‘Accumulated Depreciation’ an asset, liability, income, or expense?
Accumulated Depreciation is classified as a Contra-Asset (a type of Asset).
In accounting, accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset over time. It reduces the value of the related asset on the balance sheet. While it’s technically a “contra-asset” account (which decreases the asset’s book value), it is still shown in the asset section of the balance sheet, just as a negative balance.
