Fill in the blanks with the category of the expanded accounting equation (assets, liabilities, stockholders' equity, dividends, revenues, expenses). Check your spelling carefully and do not abbreviate.
Inventory Retained Earnings
Dividends Cost of Goods Sold
Utilities Payable Service Revenue
Accounts Payable Rent Expense

As inventory is owned by the company for the purpose of generating cash, it is considered an asset. They are current assets since they must be sold within a year.

b. Dividends: Dividends

Dividends refer a portion of a company's profits that is paid out to its shareholders.

c. Utilities Payable: Liabilities

Utilities payable are liabilities since they represent utilities that the corporation is yet to settle. Utilities payable are current liabilities item since they have to be paid within a year.

d. Accounts Payable: Liabilities

Amounts owed to vendors or suppliers for products or services received but not yet paid for are referred to as accounts payable. They are current liabilities item since they have to be paid within a year.

e. Retained Earnings: Stockholders' equity

Profits that were not distributed to shareholders are known as retained earnings. However, because they are still owned by the shareholders, they are classified as equity.

f. Cost of Goods Sold: Expenses

The direct costs of manufacturing the goods that a company sells are referred to as COGS. This is an income statement item.

g. Service Revenue: Revenue

The income a corporation earns from providing a service is referred to as service revenue. This is also an income statement item.

h. Rent Expense: Expenses

The cost incurred by a firm to use a property or location for business purposes is referred to as rent expense. Rent Expense is also an income statement item.