Classify each of the items in the following list as an asset, a liability or neither an asset nor a liability. Explain whether each item identified as an asset or a liability would meet the conditions for recognition of the item in the statement of financial position (balance sheet).

(a) An advance in salary paid to an employee.

(b) Cash held in the cash register of a shop.

(c) A customer (trade debtor) who has recently been declared bankrupt by the courts.

(d) Items of inventory (stock) of finished goods that have been returned by a customer as being below the quality expected.

(e) A dollar loan made to a business by a US bank.

(f) The cost of providing management training for key personnel.

(g) An amount spent on undertaking market research to determine the best marketing strategy for a new product.

(h) A guarantee given by a company to a bank that it will meet the overdraft of a senior employee of the company if that employee defaults on the payments to the bank.