JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 10 Liabilities Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1 Explain a current liability, and identify the major types of current liabilities. 2 Describe the accounting for notes payable. 3 Explain the accounting for other current liabilities. 4 Explain why bonds are issued, and identify the types of bonds. 5 Prepare the entries for the issuance of bonds and interest expense. 6 Describe the entries when
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disclosed as a parenthetical comment in the balance sheet. Need not to be disclosed. Should be disclosed by an appropriation of retained earnings. 3. The ABC Company operates a catering service specializing in business luncheons for large corporations. ABC requires customers to place their orders 2 weeks in advance of the scheduled events. ABC bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date
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specified amount. An overly generous dividend policy could leave the company so short of cash as to endanger the position of bondholders. 15–2 Restrictions commonly imposed on a borrowing company by long-term creditors relate to (a) dividend payments, (b) acquisition of property and equipment, (c) increases in managerial compensation and (d) acquisition of additional debt. Such actions are usually permitted only if they will not reduce the current ratio and amount of working capital below specified
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Chapter 5 Recognizing Expenditures in Governmental Funds Questions for Review and Discussion 1. Expenditures are decreases in net financial resources whereas expenses are reductions in overall net assets. Expenditures are governmental fund equivalents of expenses. In effect, expenditures are expenses that are determined on the modified rather than the full accrual basis of accounting. 2. Expenditures should be recognized on an accrual basis unless they qualify as one of the exceptions
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------------------------------------------------- Mathematics A ------------------------------------------------- Managing Money Sophie Applegarth student number s009244 Teacher LNN House group 12 Gibson Task A Question 1- Finding your loan 1 a) Combined weekly income (after tax) of my partner and I = $1050 + ($2080 / 2) = $2090 per week Therefore= $2090 X 52 weeks per annum = $108680 per annum. Known debt for car loan = $480/month X 12 months =$5760 per annum in debt
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consumer taking out a mortgage today without an easy-to-implement mortgage reduction plan designed to pay off mortgage quickly is missing the opportunity of a lifetime. Let's say you took out a $200,000 mortgage today at 6.00% for 25 years. Your monthly payment will be approximately $1288.60. In 25 years, you would have to repay over $386,500 for the mortgage including the original loan and interest before you can invite your friends and family to the mortgage burning party. That is almost double the amount
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product levels, monitoring of appropriate credit/payment terms, and mitigating any situation where the servicing of the working capital may significantly constrain the firm’s cash position. Lawrence Sports must implement alternative working capital policies to effectively monitor working capital in the short term to include lending, monitor working capital monthly, negotiating short-term and implementing supplier agreements to negotiate client payment strategies. Most importantly, Lawrence Sports
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fundamental concepts of cash budgets and outline the steps necessary for preparing a cash budget for your business. It will also show you how to evaluate your budget on a month-to-month basis. This Business Builder assumes that an income statement and a balance sheet have been prepared for your business. Information from these financial statements are an integral part of creating a budget. Without that information, this Business Builder may not be as helpful as it could be. what you should know before
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------------------------------------------------- The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) developed common lease accounting requirements to ensure that assets and liabilities from lease contracts are recognized in the balance sheet. August 17, 2010, the FASB issued Proposed Accounting Standards Update – Leases (Topic 840). Because leasing is an important source of finance, the board issued an Exposure Draft (ED) to ensure that this development would be with a complete
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Mesopotamia Luca Pacioli Provident Fund Depreciati Income & Expenditure Credit TM AccountAble Handbook Budget & Balance Report vFkZ'kkL= Corpus Voucher NGO Fixed Assets Register Grants Accounting Standards Narration Receipts and Revenue Stamps Benedetto Cotrugli Ledgers Regulation Cash Box Revolving Funds Accounting Multiple Cash Books Trial Balance Auditors Computerized Accounts Deficit Endowments Investments Journal Honorarium Form IIIA Bank Reconciliation
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