Question

Classify each of the following financial statement items taken from Ming Corporation’s balance sheet. select a proper balance sheet classification Accounts payable select a proper balance sheet classification Accounts receivable select a proper balance sheet classification Accumulated depreciation—equipment select a proper balance sheet classification Buildings select a proper balance sheet classification Cash select a proper balance sheet classification Interest payable select a proper balance sheet classification Goodwill select a proper balance sheet classification Income taxes payable select a proper balance sheet classification Inventory select a proper balance sheet classification Stock investments (to be sold in 7 months) select a proper balance sheet classification Land (in use) select a proper balance sheet classification Mortgage payable select a proper balance sheet classification Supplies select a proper balance sheet classification Equipment select a proper balance sheet classification Prepaid rent

Answer 1

Step-by-step explanation:

Classify each of the following financial statement items taken from Ming Corporation’s balance sheet. Select a proper balance sheet classification.

Accounts payable select a proper balance sheet classification- Current liabilities

Accounts receivable select a proper balance sheet classification - Current asset

Accumulated depreciation—equipment select a proper balance sheet classification-Fixed Asset

Buildings select a proper balance sheet classification -Fixed Asset

Cash select a proper balance sheet classification -Current asset

Interest payable select a proper balance sheet classification -Current Liabilities

Goodwill select a proper balance sheet classification-Intangible Asset

Income taxes payable select a proper balance sheet classification-Current Liabilities

Inventory select a proper balance sheet classification-Current asset

Stock investments (to be sold in 7 months) select a proper balance sheet classification -Current Asset. Long-term investments are assets that a company intends to hold for more than a year.

Land (in use) select a proper balance sheet classification-Fixed Asset

Mortgage payable select a proper balance sheet classification - From the perspective of the borrower, the mortgage is considered a long-term liability. Any portion of the debt that is payable within the next 12 months is classified as a short-term liability.

Supplies select a proper balance sheet classification-Current Asset

Equipment select a proper balance sheet classification-Fixed Asset

Prepaid rent-Current Asset