accounting question

Question

indicate whether each of the following accounts represents an asset, liability, or owner's equity:

a.		Accounts payable
b.		Wages expense
c.		Capital
d.		Accounts receivable
e.		Withdrawal
f.		Land

Answer 1

A. Liability, because you owe money.

B. This doesn't exactly fit your responses, but if you have to select one, it would be equity. Income and expense ultimately end up retained earnings which is part of equity.

C. Equity

D. Current Asset

E. Non-depreciable fixed asset.

Answer 2

A. is a liability. All payables mean you owe money to someone.

B. is none of your choices.

C. and E. are owners' equity.

D. and F. are assets. Receivables are the opposite of payables. They mean someone owes you money. Land is a fixed asset because the value doesn't change over time.