Chapter 3, Problem 7PSB

To determine

Current Assets:

Current assets are short-term assets that are likely to be turned into cash within a year. For example, cash, accounts receivable, inventories, and many more.

Long-term Investments:

Any investment that a company makes with a view of keeping it for more than one year is called a long-term investment.

Plant Assets:

Any assets whose useful life is more than one year and which are used to facilitate the production process are called plant assets.

Intangible Assets:

Intangible assets are those assets that do not have a physical nature but yet have value for the company. For example, Patent and goodwill.

Current Liabilities:

Any liability which needs to be paid within one year is called current liability.

Long-term Liabilities:

Any liability which is not due to be paid within one year is called long-term liability.

Equity:

It is a shareholder’s fund. It is that part of the company's liabilities that are used to finance the operations of the business. They are the owner of the business.

To identify: To indicate the correct letter against each balance sheet item.