Assets of one firm can correspond to the liabilities of another firm. For example, an account receivable on the seller's balance sheet is an account payable on the buyer's balance sheet. Required: For each of the following items, indicate whether it is an asset or a liability and give the corresponding account title on the balance sheet of the other party to the transaction:
a. Bonds Payable.
b. Interest Receivable.
c. Prepaid Insurance.
d. Rental Fees Received in Advance.
e. Advances from Customers.
a. Liability—Investment in Bonds.
b. Asset—Interest Payable.
c. Asset—Insurance Premiums Received in Advance.
d. Liability—Prepaid Rent.
e. Liability—Receivable from Supplier or Prepaid Merchandise Orders.
You might also like to view...
Which of the following statements is CORRECT?
A. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. B. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically. C. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. D. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. E. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0.
Which of the following sections of the marketing planning outline is part of the marketing mix?
A) recommendation B) finance C) promotion D) strategy
A new coffee shop has set up a punch-card system where customers that receive 10 punches (one for each purchase in the shop) will then receive a free drink of their choice. This system is what type of customer relationship program initiative?
a. Engaging customers using social media b. Product customization c. Customer loyalty program d. Product placement program
Generally, adjudications are directed at large groups
a. True b. False