QQuestionAccounting
QuestionAccounting
which account does not appear on the balance sheet?
owner's equity
accounts payable
utility expense
accounts receivable
retained earnings
10 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1:: Identify the types of accounts that appear on a balance sheet
The balance sheet is composed of three main categories of accounts: assets, liabilities, and owner's equity.
Step 2:: Analyze the given account options
The accounts provided are owner's equity, accounts payable, utility expense, and accounts receivable.
Step 3:: Classify each account into its respective category
- Owner's equity: This is a part of the equity section of the balance sheet. - Accounts payable: This is a liability account, typically listed under current liabilities in the balance sheet. - Utility expense: This is an expense account, which falls under the equity section as part of the income statement accounts. - Accounts receivable: This is an asset account, usually listed under current assets in the balance sheet.
Step 4:: Identify the account that does not appear on the balance sheet
From the analysis above, we can see that the account that does not appear on the balance sheet is utility expense. This is because utility expense is an income statement account, not a balance sheet account. It is reported in the income statement, not the balance sheet.
Final Answer
Utility expense does not appear on the balance sheet.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students