With that definition and understanding, find an account that can appear under Assets as well as Liabilities in a Balance Sheet.Explain why or why not this will be possible.

The Accounts Receivable/Payable is a common account that can be found on both the Assets and Liabilities section of a balance sheet. It is so because the line item usually contains money that’s owed by or to the business. If a company has unpaid invoices, the amount that is owed will be shown as a liability. If money is due from clients for services or goods rendered, it will appear as an asset.

For instance, let’s say that XYZ Company provides web design services for clients and sends out invoices at the end of each month for payment. If this is the case, unpaid invoices from customers will be shown under Accounts Receivable/Payable in their balance sheet until they are collected. It is clear that accounts are classified either as assets or liabilities based on their context and usage over time.