Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets E. Current liabilities

B. Long-term investments F. Long-term liabilities

C. Plant assets G. Equity

D. Intangible assets

18. Notes receivable (due in 120 days)

Short answer

The correct answer isE, Current assets.

Step-by-step solution

Definition of notes receivables

An asset that shows how much of the amount has been a creditor owes from the organization are known as notes receivables of the organization

Reason for choice

The notes are due in 120 days, so the amount will be received in the current accounting period, So, 120 days notes receivables should be disclosed under current assets section of the balance sheet.