StudyGPT Just Leveled Up – Say Hello to Knowee! 🚀
Knowee
Questions
Features
Study Tools

Accounts are classified in the ledger

Question

🧐 Not the exact question you are looking for?Go ask a question

Solution

Accounts in a ledger are typically classified into five main categories:

  1. Assets: These are resources owned by a business that have economic value. Examples include cash, accounts receivable, inventory, and property.

  2. Liabilities: These are obligations that the business needs to pay in the future. Examples include loans, accounts payable, and mortgages.

  3. Equity: This represents the owner's interest in the business. It includes common stock, retained earnings, and additional paid-in capital.

  4. Revenues: These are the earnings generated from the business's core activities, such as sales revenue and service revenue.

  5. Expenses: These are the costs incurred in the process of earning revenue, such as rent, utilities, and salaries.

Each category helps in organizing financial information to provide a clear picture of the financial health and performance of a business.

This problem has been solved

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.