The following are the major balance sheet classifications.
|
Current assets (CA) |
Current liabilities (CL) |
|
Long-term investments (LTI) |
Long-term liabilities (LTL) |
|
Property, plant, and equipment (PPE) |
Owner”s equity (OE) |
|
Intangible assets (IA) |
Instructions
Classify each of the following accounts taken from Raman Company”s balance sheet.
|
Accounts payable |
Accumulated depreciation—equipment |
|
Accounts receivable |
Buildings |
|
Cash |
Land (in use) |
|
Owner”s capital |
Notes payable (due in 2 years) |
|
Patents |
Supplies |
|
Salaries and wages payable |
Equipment |
|
Inventory |
Prepaid expenses |
|
Stock investments (to be sold in 7 months) |