How does the definition of a current liability relate to that of a current asset?
What will be an ideal response?
Current liabilities are obligations that will be satisfied within the operating cycle or within one year if the cycle is shorter than one year. Current assets will be realized in cash, or sold, or consumed during the operating cycle or within one year if the cycle is shorter. For most companies, both current assets and liabilities are reported on the balance sheet using a one-year time period.
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The loss of the ability to communicate verbally or in writing is known as ___________
Fill in the blank(s) with the appropriate word(s).
Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000? DepartmentStudents Classrooms Electrical 120 10,000 sq. ft. Welding 70 12,000 sq. ft. Accounting 50 8,000 sq. ft. Carpentry 40 6,000 sq. ft. Total 280 36,000 sq. ft.
A. $8,929. B. $11,111. C. $17,000. D. $22,667. E. $18,500.
Heritage Wines has national distribution agreements with wineries across the United States such as Cakebread and Robert Mondavi in Napa Valley, California. Heritage Wines receives their inventory from their winery suppliers and makes the wine available to customers-restaurants, bars, hotels, etc., through their sales representatives and extensive catalog. What type of business market does Heritage Wines represent?
A. Reseller B. Institution C. Government D. Producer
Landmark Corp. buys $300,000 of Schroeter Company's 8%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. When the bonds mature, the journal entry to record the proceeds will be:
A. Debit Cash $300,000; credit Interest Revenue $300,000. B. Debit Debt Investments-HTM $300,000; credit Cash $300,000. C. Debit Cash $300,000; credit Interest Receivable $300,000. D. Debit Cash $300,000; credit Debt Investments-HTM $300,000. E. Debit Cash $300,000; credit Bonds Payable $300,000.