Problem 1: State which of the following items could appear as an asset or as a liability on the balance sheet of business A? Explain your reasoning in each case? 1. $1,000 owing to business A by a customer who will never be able to pay. 2. $2,000 owing to business B for the satisfactory supply of goods during the past month 3. A provision (estimate) is made each year of $50,000 for relining the blast furnace, which takes place every three years. The current estimate is $100,000 4. Magazine subscriptions worth $27,400 have been received in advance by a publisher. 5. The purchase of a license from business B giving business A the right to produce a product designed by business B. Production of this new product is expected to increase profits over the period in which business A holds the license. 6. The purchase of a machine which will save $10,000 per annum. It is currently being used by business A but it has been acquired on credit and is not pet paid for. 7. The hiring of a new marketing director who is confidently expected to increase profits by at least 30% over the next three years. 8. The business has guaranteed a manager's personal loan of $100,000. The manager has maintained the account in good order and $79,000 is currently in owing. 9. There is a legal claim against the business for negligence over faulty workmanship. It is likely they will settle out of court for $50,000