Question - What is the general classification of accounts that usually ledger account involve?
Answer -
The general classification of accounts that usually ledger account involves are:
- Assets: cash, accounts receivable
- Liabilities: accounts payable, loans payable
- Stockholders’ equity: common stock
- Operating revenues: revenues through sales
- Operating expenses: rent expense, salaries expense
- Non-operating revenues and gains: investment income, gain on disposal of equipment
- Non-operating revenues and losses: interest expense, loss on disposal of equipment