Question

classify each of the following account types by selecting options 1 through 5.

cash
mortgage
unearned revenue
brandon jones, capital
equipment

1. current assets.
2. current liabilities
3. fixed assets
4. long-term liability
5. equity

Explanation:

Classify Cash

Cash is a highly liquid resource expected to be used within one year.
Therefore, it is classified as a current asset.

Classify Mortgage

A mortgage is a long-term debt secured by real property.
Therefore, it is classified as a long-term liability.

Classify Unearned Revenue

Unearned revenue represents cash received before services are performed, creating an obligation to deliver services within the operating cycle.
Therefore, it is classified as a current liability.

Classify Brandon Jones, Capital

Capital accounts represent the owner's residual interest in the business assets.
Therefore, it is classified as equity.

Classify Equipment

Equipment is a tangible, long-lived asset used in business operations.
Therefore, it is classified as a fixed asset.

Answer:

Account	Classification
Mortgage	4. Long-term Liability
Unearned Revenue	2. Current Liabilities
Brandon Jones, Capital	5. Equity
Equipment	3. Fixed Assets