Question

Question:Enter the number for the item that best completes each of the descriptions below.

1. Asset 3. Account 5. Three

2. Equity 4. Liability

a. Balance sheet accounts are arranged into __________ general categories.

b. Common Stock and Dividends are examples of __________ accounts.

c. Accounts Payable, Unearned Revenue, and Note Payable are examples of __________ accounts.

d. Accounts Receivable, Prepaid Accounts, Supplies, and Land are examples __________ of accounts.

e. A(n) __________ is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Short answer

Answer

The blanks would be filled in the manner—option 5, 2, 4, 1, and 3 for statements a, b, c, d, and e respectively

Step-by-step solution

Statement ‘a’.

In the balance sheet, the accounts are arranged into assets, liabilities, and equity sections.

So, option 5 is correct i.e., Three.

Statement ‘b’.

The equity section is divided into revenues, expenses, common stock, and dividend. So common stock and dividend would come under equity.

Thus, option 2 is correct i.e. Equity.

Statement ‘c’.

Accounts payable, unearned revenue, and notes payable are the obligations on the business to be met in the future.

So, these are the parts of the liability and option 4 is the correct filler.

Statement ‘d’.

Accounts receivables, prepaid expenses, supplies, and land are the assets for any business. They are the resources for generating income or meeting expenses in the future and are owned by the business.

So, the correct answer is option 1 i.e. Assets.

Statement ‘e’.

Increase or decrease of specific assets, liabilities, equity, expense, and revenue are maintained in a separate nature of the book called to account.

So, the correct answer is option 3.