Answer:
Matching items with their appropriate classifications:
No. Items Classifications
1. Buildings Property Property, plant, and equipment
2. Copyright Intangible assets
3. Supplies Current assets
4. Unearned service revenue Current liabilities
5. Prepaid insurance Current assets
6. Common stock Contributed capital
7. Rent payable Current liabilities
8. Accounts receivable Current assets
9. Allowance for doubtful accounts Current assets (contra)
10. Bonds payable Long-term liabilities Long-term liabilities
Explanation:
Appropriate Classifications of balance sheet items:
a. Current assets = short-term assets, usually of 12-months duration.
b. Property, plant, and equipment = long-term or non-current assets, of more than 12-months duration, used for producing additional resources.
c. Intangible assets = non-current assets, that are not tangible like property, plant, and equipment.
d. Current liabilities = short-term liabilities, usually of 12-months duration.
e. Long-term liabilities = non-current liabilities, of more than 12-months duration.
f. Contributed capital = funds provided by the equity owners
g. Retained earnings = funds provided from internal sources, incomes not paid out as dividends or redistributed to stockholders.
