Basic Categories of Accounts

Which of the following is considered an asset?

• Cash

• Accounts payable

• Loan

• Interest payable

Fill in the blank: Liabilities are something that a business owes to a ______.

• owner

• non-owner

• employee

• customer

Which of the following is an example of an account payable?

• Service Revenue

• Common Stock

• Wages Payable

• Retained Earnings

In a sole-proprietorship, a ______ account is used to record the investment of the owners.

• Common Stock

• Capital

• Retained Earnings

• Service Revenue

Which of the following is an example of an expense account?

• A) Cost of Goods Sold

• B) Revenue

• C) Assets

• D) Liabilities

Fill in the blank: The order of a chart of accounts is listed as Assets, Liabilities, Equity, Revenue, and ______.

• A) Expense

• B) Income

• C) Profit

• D) Loss

What is 'Mortgage Payable' classified as?

• Asset

• Liability

• Equity

• Revenue

Which category does 'Notes Payable' belong to?

• Equity

• Revenue

• Liability

• Expense

'Common Stock' belongs to which category?

• Liability

• Revenue

• Expense

• Equity