Solution 2.2

Indicate, by circling either true or false, whether the following classifications for assets and liabilities are correct 

  Machinery = Asset

True

False

  Creditors = Asset

True

False

  Premises = Asset

True

False

  Motor vehicles = Asset

True

False

  Stock = Asset

True

False

  Bank overdraft = Asset

True

False

  Creditors = Liability

True

False

  Debtors = Liability

True

False

  Cash = Liability

True

False

  Loan = Liability

True

False