At the balance sheet date, a hotel has paid insurance covering the next six months. It has also received a deposit for a conference that will take place in two months. How should these items be classified?

A business has a bank loan of $80,000. Under the repayment agreement, $20,000 must be repaid during the next accounting year and the remaining $60,000 is due three years later. How should the loan be shown on the balance sheet?

A florist owns a delivery motorcycle, cut flowers ready for sale, cash in the bank and shop fittings. Which pair should both be classified as current assets?

A vehicle repair business buys a diagnostic machine for use over five years. Payment to the supplier is due in 90 days. It also buys spare parts to use in customer repairs. Which classification is correct?

A business replaces its bank overdraft with a new loan that is repayable in five years. Which change in classification should occur?

A property company owns one house that it uses as its administrative office and three houses purchased for resale to customers. How should these properties be classified?

At its year end, a manufacturer owes wages payable next week, tax payable in four months, a mortgage due in ten years and a supplier invoice due in 18 months. Which option places the liabilities in the correct groups?

Study the labelled items in the figure. Which option correctly classifies items B and D?

The figure shows the repayment schedule for loan R at the balance sheet date. How should loan R be classified?