Answer:
Explanation:
They categorize assets and liabilities into different types as assets are divided into fixed assets, current assets, long term investments and intangible assets in the listed balance sheet.
The fixed asset is a long term asset like - building, land, equipment, etc
Current asset is that asset in which the asset is converted into cash within one year Like - cash, stock, accounts receivable
Intangible assets - These assets are not seen or even touched like - intellectual property rights - patents, copyright, etc
Liabilities are also classified into current liabilities, long-term liabilities.
The accounting equation is used in each balance sheet, which means
Total assets = Total liabilities + Shareholder equity
The categorization is shown below;
Land (used in operations) = Plant asset
Accumulated depreciation - equipment = Plant asset as it is deducted from the equipment value
Common stock = Stockholders' Equity
Service revenue = not belong on the classified balance sheet = X as it has come under the income statement
Investment in Starbucks Corporation (to be held in long-term) = Long term investments
Accounts receivable = Current asset
Equipment = Plant asset
Buildings = Plant asset
Note payable (due in 10 years.) = Long term liabilities
Unearned revenue = Current liabilities
Cash = Current asset
Accounts payable = Current liabilities
Prepaid rent = Current asset
Dividends = not belong on the classified balance sheet = X
Land (held for investment purposes) = Long term investment
Depreciation = not belong on the classified balance sheet = X as it has come under the income statement
