Question

Identify the account type, normal balance, and describe the purpose of the following accounts: Fixed Asset,...

Identify the account type, normal balance, and

describe the purpose of the following accounts: Fixed Asset, Longterm Investment, and Long-Term Debt

Homework Answers

Answer #1

Answer:

Account Name

Account
Type

Normal
Balance

Fixed Asset

Assets

Debit

Long-term Investment

Investments

Debit

Long-term Debt

Liability

Credit

1) Fixed Assets shows the resources that are expected to be used in business operation for more than one year

2) Long term investments shows the amounts invested in stocks or debts of other entity and are not matured or sold in one year

3) Long term liabilities are shows the obligations that a Company have to satisfy

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