ABC Corporation intends to set up a new business unit; they are in the process of identifying

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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 from 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 from today
Retained earnings
Shareholder%u2019s 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
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  answer-question

Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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