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(Learning Objective 1: Explain accounting language)
Consider Wal-Mart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders' Equity (S) for Wal-Mart:
a. Accounts payable
b. Common stock
c. Supplies
d. Retained earnings
e. Land
f. Prepaid expenses
g. Accounts receivable
h. Long-term debt
i. Merchandise inventory
j. Notes payable
k. Accrued expenses payable
l. Equipment
Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow.
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