Classifying Accounts and Their Usual Balances
As described in a recent annual report, Verizon Wireless provides wireless voice and data services across one of the most extensive wireless networks in the United States. Verizon now serves more than 80 million customers, making it the largest wireless service provider in the United States in terms of the total number of customers. The following are accounts from a recent balance sheet for Verizon.
(1) Accounts Receivable (6) Long-Term Investments
(2) Retained Earnings (7) Plant, Property, and Equipment
(3) Taxes Payable (8) Accounts Payable
(4) Prepaid Expenses (9) Short-Term Investments
(5) Contributed Capital (10) Long-Term Debt
Required:
For each account, indicate whether the account is classified as a current asset (CA), noncurrent asset (NCA), current liability (CL), noncurrent liability (NCL), or stockholders’ equity (SE), and whether the account usually has a debit or credit balance.