Complete the Following Table Concerning the Classification of Items in the Statement

question 41

Essay

Complete the following table concerning the classification of items in the statement of financial position.
ACCOUNT ELEMENTS CLASSIFICATION
(Asset, Liability, Equity)(Current, Non-current)
$\begin{array}{|l|l|l|l|}\hline\text { e.g. } & \text { Cash on hand } & \text { Asset } & \text { Current } \\\hline \text { e.g. } & \text { Land and buildings } & \text { Asset } & \text { Non-current } \\\hline 1 & \text { Inventory } & & \\\hline 2 & \text { Accounts receivable } \\\hline 3 & \text { Bank overdraft } \\\hline 4 & \text { Prepaid insurance } \\\hline 5 & \text { Share capital } \\\hline 6 & \text { Retained profits } \\\hline 7 & \text { Accounts payable } \\\hline 8 & \text { Goodwill } \\\hline 9 & \text { Plant and equipment } \\\hline 10 & \text { Franchise } \\\hline 11 & \text { Loan from Eagle Finance (5 years) }\\\hline\end{array}$

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Definitions:

Premium

The amount by which the price of a financial instrument or security, like an insurance policy, bond, or stock, exceeds its face value or nominal value.

Straight-Line Method

A technique for determining depreciation or amortization by uniformly spreading an asset's cost throughout its lifespan.

Amortizes

The process of gradually writing off the initial cost of an asset over a period, effectively spreading the cost over its useful life.

Accrued Interest

Accrued interest is the interest on a loan or bond that has accumulated since the principal investment or last payment period but has not yet been paid.