Final answer:
Assets on a balance sheet are items of value that a company owns, which include Accounts Receivable, Merchandise Inventory, Cash, and Equipment. Liabilities such as Accounts Payable and Short-term Debt are not assets. Assets are part of the key equation in a balance sheet, which is Assets = Liabilities + Owner's Equity.
Step-by-step explanation:
The question asks which items from the provided list are considered assets. In accounting, an asset is an item of value that a firm or an individual owns and can use to produce something. The line items that are considered assets include: Accounts Receivable, Merchandise Inventory, Cash, and Equipment. Accounts Payable, Cost of Goods Sold, and Short-term Debt are liabilities, not assets, and thus are not included in the list of assets.
A balance sheet is a financial statement that lists a company's assets and liabilities to provide a snapshot of its financial position at a given point in time. The assets on a balance sheet would generally include items such as cash and coins, accounts receivable, inventory, and equipment. These items are owned by the company and can be used to generate revenue or are expected to be converted into cash in the future. On the other hand, liabilities such as Accounts Payable and Short-term Debt represent money that the company owes to others and are not considered assets. The concept of assets is crucial in understanding the financial health of a business, as it forms part of the equation where Assets = Liabilities + Owner's Equity, which must be in balance.