ACCT 201 Principles of Financial Accounting Practice Exam - Chapter 3 Reporting & Preparing Financial Statemens Dr. Fred Barbee Solution to Short-Problem #2

Short Problem #2

Classified balance sheets commonly include the following categories:

a.	Current Assets
b.	Investments
c.	Plant Assets
d.	Intangible Assets
e.	Current Liabilities
f.	Long-Term Liabilities
g.	Equity

Indicate the typical classification of each item listed below by placing the letter of the correct balance sheet category a through g in the blank space next to the item.

1.	c	Buildings used in business operations
2.	a	Office Supplies
3.	b	Land held for future plant expansion
4.	f	Long-term note payable
5.	a	Accounts Receivable
6.	g	Retained Earnings
7.	e	Accounts Payable
8.	a	Merchandise Inventory
9.	d	Patents
10.	e	Wages Payable
11.	a	Prepaid Expenses
12.	a	Cash