Question

Using the letters above and the format below, indicate the balance sheet category in which an entity typically would place each of the following items. Indicate a contra account by placing your answer in parentheses. 1. __________ Long-term receivables 2. __________ Accumulated amortization 3. __________ Current maturities of long-term debt 4. Page 192__________ Notes payable (short term)

Answer 1

Answer:

The balance sheet category in which an entity typically would place each of the following items:

1. _Non-Current Assets_ Long-term receivables

2. _(Non-Current Assets)__ Accumulated amortization

3. __Current Liabilities__ Current maturities of long-term debt

4. Page 192_Current Liabilities_ Notes payable (short term)

Explanation:

A company's balance sheet has three main categories: assets, liabilities, and owners' equity. The assets are usually classified as Current Assets or Non-Current (long-term) Assets.  On the other side of a balance sheet, there are the Liabilities and Owners' Equity.  The Liabilities are classified into Current Liabilities and Non-Current Liabilities.  Usually, the Owners' Equity is made up of Owners' Capital and Retained Earnings.