Question

Classify the following balance sheet items as current or noncurrent:

Retained earning	Bond payable
Accounts payable	Accrued wages payable
Prepaid expenses	Accounts receivable
Plant and equipment	Capital in excess of par
Inventory	Preferred stock
Common stock	Marketable security

Short answer

Current asset means the assets which can reasonably be expected to be realizable within a year or during the normal operating cycle of the business.

Step-by-step solution

Non-current assets

The non-current assets mean the assets which can not be expected to be realized in the normal operating cycle or within one year.

Classification of balance sheet item as current or non-current

Particulars	Classification
Retained earnings	NA
Bonds payable	Non-current
Accounts payable	Current
Accrued wages payable	Current
Prepaid expenses	Current
Accounts receivable	Current
Plant and equipment	Non-current
Capital in excess of par	NA
Inventory	Current
Preferred stock	NA
Common stock	NA
Marketable security	Current