Question

Are the following balance sheet items (A) assets, (L) liabilities, or (E) stockholders' equity? a. Cash dividends payable b. Mortgage notes payable c. Investments in stock d. Cash e. Land f. Inventory g. Unearned rent h. Marketable securities i. Patents j. Capital stock k. Retained earnings I. Accounts receivable m. Taxes payable n. Accounts payable o. Organizational costs p. Prepaid expenses q. Goodwill r. Tools s. Buildings

   Are the following balance sheet items (A) assets, (L) liabilities, or (E) stockholders' equity?
a. Cash dividends payable
b. Mortgage notes payable
c. Investments in stock
d. Cash
e. Land
f. Inventory
g. Unearned rent
h. Marketable securities
i. Patents
j. Capital stock
k. Retained earnings
I. Accounts receivable
m. Taxes payable
n. Accounts payable
o. Organizational costs
p. Prepaid expenses
q. Goodwill
r. Tools
s. Buildings

Financial Reporting and Analysis: Using Financial Accounting Information

Charles H. Gibson 12th Edition

Chapter 3, Problem 2

Instant Answer

Step 1

Balance sheet items are classified into three main categories: - Assets (A): Resources owned by a company that have economic value. - Liabilities (L): Obligations or debts that the company owes to outside parties. - Stockholders' Equity (E): The owners' claim Show more…

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Are the following balance sheet items (A) assets, (L) liabilities, or (E) stockholders' equity? a. Cash dividends payable b. Mortgage notes payable c. Investments in stock d. Cash e. Land f. Inventory g. Unearned rent h. Marketable securities i. Patents j. Capital stock k. Retained earnings I. Accounts receivable m. Taxes payable n. Accounts payable o. Organizational costs p. Prepaid expenses q. Goodwill r. Tools s. Buildings

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