Classifying Accounts into Assets, Liabilities, Owners Equity, Revenue or Expense

Inventory

Asset. Goods or Material that is held by a company for the purpose of reselling for a profit.

Equipment

Asset. It's a Long-term Asset, a machine used for producing a product or service. It has a specific design and purpose.

Accounts Receivables

Asset. Money owed by the customer to the Company.

Land

Asset. Real Property where a company's office buildings or manufacturing plants sit.

Cash

Asset. The most liquid form of Asset a company can hold.

Prepaid Expenses

Asset. When a business pays for goods and services that will be received in the near future

Marketable Securities

Assets. Any equity or debt instrument that it readily salable and can be converted into cash, or exchanged with ease. Stocks, bonds, short-term commercial paper and certificates of deposit. (Investopedia)

Paid-in Capital

Equity. Capital received by a company for the sell of stock at a price greater than par value.

Common Stock

Equity. Ownership shares in a company.

Retained Earnings

Equity. Reports the net income of a corporation from its inception less the dividends paid/declared from its inception to the date of the balance sheet.

Salaries Expense

Expense (Equity). Costs associated with generating sales. Found on the Income Statement

Unearned Revenues

Liabilities. Money received by a company in advance of providing a service or delivering a product.

Notes Payable

Liability. A formal written promise to pay. Example: Bank loans

Salaries Payable

Liability. Salaries earned by a company's employees, but have not been paid by the company

Accounts Payable

Liability. This is a current liability account that shows the amount a company owes for items or services purchased on credit. This is often referred to as trade payables.

Service Revenues

Revenue (Equity). Money earned for the sale of a product or service.