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The Fair View Golf & Country Club details the following accounts in its financial statements.
(a)
(b)
Accounts payable
_____
Accounts receivable
Equipment
Sales revenue
Service revenue
Inventory
Mortgage payable
Supplies expense
Rent expense
Salaries and wages expense
Instructions
(a) Classify each of the above accounts as an asset (A), liability (L), stockholders" equity (SE), revenue (R), or expense (E) item.
(b) Classify each of the above accounts as a financing activity (F), investing activity (I), or operating activity (O). If you believe a particular account doesn"t fit in any of these activities, explain why.
Suppose you have determined the profitability of a planned project by finding the present value of all the cash flow from that project.
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