Type of account asset or expense

Task: For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers.

1. $200 for repairing damage that resulted from the careless unloading of a new machine.

2. $ 7,000 cost of designing and registering a trademark.

3. $ 1,400 in legal fees incurred to perform a title search for the acquisition of land.

4. $400 cost of patching a leak in the roof of a building.

5. $90,000 cost of salaries paid to the research and development staff.

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Accounting Basics: Type of account asset or expense
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