Multiple Choice
Charitable donations, entertainment expenses, and financial goals are all examples of which of the following in accounting?
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1. Introduction to Accounting
Types of Accounting
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Which of the following is NOT classified as an expense account in financial accounting?
A
Accounts Receivable
B
Salaries Expense
C
Rent Expense
D
Utilities Expense
Verified step by step guidance1
Understand the definition of an expense account: Expense accounts are used to record costs incurred by a business in its operations, such as salaries, rent, and utilities.
Review the provided options: Accounts Receivable, Salaries Expense, Rent Expense, and Utilities Expense.
Identify the nature of 'Accounts Receivable': Accounts Receivable is an asset account, not an expense account. It represents money owed to the business by customers for goods or services provided on credit.
Compare the other options: Salaries Expense, Rent Expense, and Utilities Expense are all examples of expense accounts because they represent costs incurred by the business.
Conclude that 'Accounts Receivable' is NOT classified as an expense account, as it is an asset account.
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