• Cash: assets
• Land: assets
• Note payable: liabilities
• Investments: assets
• Capital lease: liabilities
• Accounts receivable: assets
• Accounts payable: liabilities
• Furniture and equipment: assets
2) Define the term “bankrupt”?
Bankrupt is when an organization or individual is declared by law unable to pay their outstanding debts.
3) What does “temporarily restricted” mean?
Temporally restricted means that revenue has requirements that will eventually be satisfied. Unlike permanently restricted, where your revenue is permanently restricted.
4) Is the finical position of the organization positive or negative?
By the information given in the balance sheet the organization is a negative position, the organizations assets are less than its liabilities.
5) when determining whether or not an organization needs to file bankruptcy which document would you look at, the statement of cash flows, or a balance sheet?
If an organization is considering filing bankruptcy, they are going to look at their statement of cash flows because a balance sheet, which is, also known as the statement of financial position is a summary of the organizations assets, liabilities and net assets. A statement of cash flows allows an organization to see ahead if they can pay their bills when they are due.
6) Is it possible for an organization to meet its monthly operational expenses but still be in a poor financial position?
An organization can only be successful for a short period if they are in a poor financial position. It would take the little money that they have to pay the necessary things they need to keep them running, but when that money runs out then they will have no choice but to file for