Question

Match each balance sheet item to its correct category.

Answer 1

Answer:

See below

Explanation:

Assets, Liabilities, and  Equity form the basis for preparing the balance sheet. They make the accounting equation of Assets= Liabilities + Equity.

Assets are the valuables a business owns. They can be in the form of cash, money in the banks, financial instruments, properties, machines, or motor vehicles.

Assets will be

• Cash
• computers,
• furniture

Liabilities are what the business owes to third parties and supplies. Liabilities are usually in the monetary form, such as loans, rent, and accounts payable.

Liabilities

• Rent,
• Loan
• wages payable,

Equity is the owner's contribution to the business. They include capital and retained earnings.

Equity

• retained owners
• personal investment earnings,