Question

Select the balance sheet category where the items given would typically

Items Balance Sheet Category
1. Cash equivalents Current assets
2. Bond investment to be held through maturity in five years Long-term investments
3. Land not currently used in operations Plant assets
4. Equipment Plant assets
5. Trademarks Intangible assets
6. Wages Payable Current liabilities
7. Bonds payable Long-term liabilities
8. Short-term note payable Current liabilities

Answer 1

Answer and Explanation:

The balance category is shown below:-

Current assets are those assets that are converted into cash within one year for example inventory, accounts receivable, etc.

Fixed assets are those assets that are to be considered as to be long term that is 3 years, 5 years, etc. For example land, building, machinery, etc.

1. Cash equivalents Current assets

2. Bond Investment Investment

3. Land not currently used in operations Fixed assets

4. Equipment Plant assets

5. Trade marks ( Other assets) Intangible assets

6. Wages payable Current liabilities 7. Bonds payable Long term liabilities

Short - term note payable Current liabilities