classify each of the items as an asset or a liability. place each item into the correct category accounts…

classify each of the items as an asset or a liability. place each item into the correct category accounts receivable mortgage payable inventory accounts payable cash loans payable equipment taxes payable assets liability

classify each of the items as an asset or a liability. place each item into the correct category accounts receivable mortgage payable inventory accounts payable cash loans payable equipment taxes payable assets liability

Answer

Brief Explanations:

Assets are resources owned by a company that have future economic value. Liabilities are obligations or debts a company owes.

  • Accounts receivable: Represents money owed to the company (asset).
  • Mortgage payable: Debt owed for a mortgage (liability).
  • Inventory: Goods held for sale (asset).
  • Accounts payable: Money owed to suppliers (liability).
  • Cash: Physical money or cash - equivalent (asset).
  • Loans payable: Debt from loans (liability).
  • Equipment: Physical asset used in business (asset).
  • Taxes payable: Tax debt owed (liability).

Answer:

  • Assets: accounts receivable, inventory, cash, equipment
  • Liability: mortgage payable, accounts payable, loans payable, taxes payable