Chapter 4, Problem 9QS

To determine

Concept Introduction:

• There are two types of balance sheet i) Classified balance sheet and ii) Unclassified Balance sheet.

• Classified Balance sheet is the one where items are grouped into further subcategories i.e. assets and liabilities are grouped as current and non-current.

• Unclassified Balance sheet is one where items are broadly grouped as assets, liabilities and equity.

• Current Items are those which are expected to be either due from or owed to within one year. Current Assets are expected to be converted into cash or are due from debtors within a year whereas current liabilities are amounts due to be paid to creditors within a year.

• Long term liabilities: The obligations which are not expected to be paid in the current future say one year are termed as long term liabilities.

• Intangible Assets – It is an asset which is not physically present. For example, goodwill, trademarks etc.

• Plant assets are assets which have a useful life of more than one year.

To determine:

Balance sheet categories for the list of given items