Final answer:
Cash set aside for plant expansion and a 3-year note receivable on a company's balance sheet are both classified as assets. They represent potential future income and the management of capital for growth.
Step-by-step explanation:
Cash set aside for future plant expansion and a 3-year note receivable are both examples of assets on a company's balance sheet. These items contribute to a company's future profitability and thus are recorded as assets. The cash reserved for plant expansion is likely listed as part of Cash and Cash Equivalents or Long-term investments, while the 3-year note receivable is an example of a receivable, which is money owed to the company and expected to be received within a specified period.
A balance sheet, formatted like a T-account, presents a company's financial position at a specific point in time and includes assets, liabilities, and equity. Specifically, reserves for future investment and notes receivable illustrate a firm's ability to generate future income and manage financial capital for anticipated growth or projects.