The account classification for notes payable is

MBA-520 | Account Classification | Baker

I. Classify the following items as an Asset(A), Liability (L) or Equity (E).

Account

Account Type

Accounts Payable

Accounts Receivable

Accrued Expenses Payable

Common Stock

Equipment

Land

Long-Term Debt

Merchandise Inventory

Notes Payable

Prepaid Expenses

Retained Earnings

Supplies

II. Suppose you are analyzing the financial statements of Smith, Inc. Identify each item with its appropriate financial​ statement, using the following​ abbreviations: Income statement​ (I), Statement of retained earnings​ (R), Balance sheet​ (B), and Statement of cash flows​ (C). Three items appear on two financial​ statements, and one item shows up on three statements.

Account or Heading

Financial Statement

Salary Expense

Dividends

Accounts Payable

Net Income

Common Stock

Inventory

Interest Revenue

Cash

Retained Earnings

Long-Term Debt

Increase or Decrease in Cash

Net Cash Provided by Operating Activities

Sales Revenue

Net Cash used for Financing Activities

III. For each of the following​ questions, indicate which financial statement would most likely be used to provide the information. Use the following​ abbreviations: Income statement​ (I), Statement of retained earnings​ (R), Balance sheet​ (B), and Statement of cash flows​ (C).

a) What were the company's net sales for the year?

b) What assets does the company have?

c) How much cash was generated by operating activities?

d) Why did the company's retained earnings change during the year?

e) How much in total debt does the company have?

f) How well did the company perform during the year?

g) Did the company declare a dividend during the year?

h) How much cash did the company generate and spend during the year?

i) What is the company's financial position at the end of the year?