In column A, identify the account to which element it belongs whether Current Asset (CA), Noncurrent Assets (NCA), Current Liabilities (CL), Noncurrent liabilities (NCL) or Shareholders’ equity (SHE). In column B, indicate the line item to which the account belongs.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 19MC: Owners equity represents which of the following? A. the amount of funding the company has from...

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

In column A, identify the account to which element it belongs whether Current
Asset (CA), Noncurrent Assets (NCA), Current Liabilities (CL), Noncurrent liabilities (NCL) or
Shareholders’ equity (SHE). In column B, indicate the line item to which the account belongs.
Column A Column B
1. Share Capital
2. Accounts Payable
3. Plant Expansion Fund
4. Trading Securities
5. Employees income tax payable
6. Goodwill
7. Raw Materials
8. Share Premium
9. Advances from customers

10. Serial bonds not collectible currently
11. Investment in Bonds
12. Notes Payable
13. Prepaid Insurance
14. Income Tax Payable
15. Land

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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