會計classification of balance sheet

1. Delivery trucks
Ans: C. Property, Plant & Equipment. Delivery trucks is a Non-current asset which is used to assit the running of business by providing delivery function to the operation of the business.
2. Delivery expenses
Ans: G. Not on balance sheet. expenses account belongs to P&L accont but not balance sheet. The only way to contribute to B/S is in form of Prepayment, Accural and Profit. But in this case, delivery expenses is not exactly the item of B/S.
3. Factory not used in business
Ans: G. Not in balance sheet. Factory which is not related to the business is surely not put in the balance shee of the company.
4. Building held for sale
Ans: B. Investment. All acqusition of non-current asset with sales purpose are denfinate as Investment which the acquisition are short-term and contribute profit to business directly.
5. Building used in operations
Ans: C. Property, Plant & Equipment. Building belongs to Property and which is used to assist the operation of the business.
6. Fund held to pay off long-term debt
Ans:Owner's equity. Fund held to pay-off debts is a form of reserve which is included in Owner's equity. Owner's equity = Stock(Share) + reserve.
7. Depreciation expenses
Ans: G. Not in the balance sheet. It should be noticed that the amount deducted from NBV of PPE is Accumulated depreciation. Acc. Dep. is not as same as Depreciation expenses. Depreciation expenses is a item of expenses inside P/L.