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

5. Machinery

Short answer

The correct answer isC, Plant assets.

Step-by-step solution

Definition of machinery

Machinery is an asset that helps in the organization's production process; it is a fixed asset and should be depreciated using an appropriate depreciation method.

Reason for choice

Machinery is an asset and provides benefits for a more extended period; hence it should be disclosed under the plant asset section of the balance sheet. The plant asset section records all the fixed assets of the organization.