Asset Liability Neither An Asset Nor A Liability.
Classify each of the items in the following list as: asset; liability; neither an asset nor a liability.
1. cash at bank
2. loan from the bank
3. letter from the bank promising an overdraft facility at any time in the next three months
4. trade receivable (an amount due from a customer who has promised to pay later)
5. trade receivable (an amount due from a customer who has promised to pay later but has apparently disappeared without leaving a forwarding address)
6. trade payable (an amount due to a supplier of goods who has not yet received payment from the business)
7. inventory of finished goods (fashion clothing stored ahead of the spring sales)
8. inventory of finished goods (fashion clothing left over after the spring sales)
9. investment in shares of another company where the share price is rising ( j) investment in shares of another company where the share price is falling
11. lender of five-year loan to the business
12. customer to whom the business has offered a 12-month warranty to repair goods free of charge
13. a motor vehicle owned by the business
14. a motor vehicle rented by the business for one year
15. an office building owned by the business
16. an office building rented by the business on a 99-year lease, with 60 years' lease period remaining.