Problem: Listed below are accounts that are found in financial statements. For each of the accounts, using any and all sources available to you, provide the following infor mation.
a. Provide the official definition under Generally accepted accounting principles.
b. Identify the type of account (asset, liability, equity, revenue, expense, etc.)
c. Give an example of a specific transaction or event that would cause the account to increase and a specific transaction or event that would cause it to decrease.
d. If and when the account is recognized, is an increase in the account recorded with a debit or a credit?
e. The normal balance for the account (debit or credit), if applicable.
f. Indicate the financial statement and section of that statement where the account will be found (example: current asset section of the classified balance sheet or other revenues and gains section of the income statement, other financial statements, or footnotes). Assume that the income statement is a multiple-step statement. Explain the type of transactions that would result in the account appearing in the financial statements.
1. Cash surrender value - Life insurance
2. Production animals
3. Cash Equivalent
4. Treasury stock
5. Trading securities