Textbook Problem

Balance Sheet Presentation

Listed below are items that may appear on a classified balance sheet.

1. Land

2. Amounts due from customers

3. Office building

4. Truck

5. Goods held for resale

6. Amounts owed to suppliers

7. Patent

8. Timberland

9. Land held as investment

10. Goodwill

Required:

Indicate whether each item is included as an asset on a classified balance sheet. If the item is an operating asset, indicate whether the item is property, plant, and equipment; an intangible asset; or a natural resource as well as the cost allocation process used (depreciation, amortization, or depletion). If the item is not an operating asset, indicate the proper balance sheet classification.