Acc400 Week 3

Week 3 Individual - Ch. 10 1, 7, 8, & 19; BE10-1; BYP10-1 Ch. 11: BYP11-10, 11-1 1. Georgia Lazenby believes a flow liability is a debt that lowlife be expected to be paid in conjunction class. Is Georgia correct? Explain. Yes, a circulating(prenominal) liability is a short-term liability that is to be paid within the report cycle which is one social class or less. 7. (a) What argon long liabilities? Give two examples. Long-term liabilities are debts that are non to be paid within an accounting cycle (one year or less) Two examples of semipermanent liabilities are owes and start up business loans. (b) What is a hamper? A impound study is a long term liability that is used by a company as capital. It is repaid by the company to an investor.   8. cable these types of bonds: (a) Secured and unlocked. A secured bond is derriereed by collateral and an unsecured bond is not backed with collateral. Collateral is represented with assets that are surrendered if the bond is not repaid. (b) Convertible and callable. A convertible bond butt be converted into stock by an investor and a callable bond is one that can be bought back by the company from the investor before the bond r to severally onees maturity. 19. Valentin Zukovsky says that liquidity and solvency are the alike thing. Is he correct? If not, how do they differ? No.

Liquidity is a measure of how well business assets can be converted to cash and solvency is the union of profit a business has in comparison to its long-term debt. BE10-1 Kananga Company has these obligations at December 31: (a) a bring up payable fo! r $100,000 due in 2 years, (b) a 10-year mortgage payable of $200,000 payable in ecstasy $20,000 annual payments, (c) cheer payable of $15,000 on the mortgage, and (d) accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability. A. Not a current liability B. The first 20,000 payment is a current liability and the 180,00 balance is a long-term debt...If you motive to excite a full essay, order it on our website: OrderCustomPaper.com

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