Show Asset/Liability/Income/Expense for each item.

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asked Jun 14, 2016 in Trial Balance, Profit & Loss Account and Balance Sheet by Shaws (19 points) 136 views

1 Answer

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Note: 1.  All Prepaid expenses are treated as assets.

2.  Every type of inventory (stock) at the end of the accounting period is treated as an asset. 

3. Netting Account means when two parties who buy and sell goods or services to each other, cancel out the amount due from each other and reach a single figure which is payable by one party to the other.

answered Jun 17, 2016 by jbsclasses (3,857 points)