financial accounting

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ABC Corporation intends to set up a new business unit; they are in the process of
identifying their current assets and liabilities. Classify the following items into the one of
these categories: current assets, non
-
current assets, current liabilities, non
-
current
liabilities, equity, and profit and loss statement. In addition, state the rationale for your
selection.
Finished goods inventory
Raw materials
Bank loan with a repayment date three years from today
Bank loan with a repayment date six months fr
om today
Outstanding receivables from products sold
Depreciation expense
Salary expense for employees
Interest expense (payable to bank for loans)
Money owed to a supplier for raw materials purchased
Dividends to be paid to shareholders two months fr
om today
Retained earnings
Shareholder’s paid
-
in capital
Machinery and equipment
Accrued salaries and related expenses such as payroll taxes
Income tax to be paid to the US government one month from today
Cash and cash equivalents
Building
Goodwill
Bonds payable to be paid in 15 months
    • 10 years ago
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