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Use the following table to answer the next question. Asset Liability Revenue Expense i Prepaid insurance Wages payable Dividends received Dividends Paid ii Equipment Accounts
Use the following table to answer the next question.
Asset | Liability | Revenue | Expense | |
i | Prepaid insurance | Wages payable | Dividends received | Dividends Paid |
ii | Equipment | Accounts payable | Sales | Rent |
iii | Inventory | Bank loan | Purchases returns | Equipment |
iv | Accounts receivable | Dividends payable | Discount received | Discount allowed |
Identify which of the above items are correctly classified:
Select one:
a.
i, ii, iii, iv
b.
i, ii
c.
ii, iii
d.
i, iv
e.
ii, iv
2.
The future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events, is the best definition of:
Select one:
a.
Assets
b.
Liabilities
c.
Income
d.
Expenses
e.
Equity
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