Current liabilities are debts that must be repaid within a year.
Current assets are assets with short lives, but inventory is not considered a current asset at times, for example in the quick ratio, inventory is disregarded.
Long-term debts are those that can be paid after a year or more, and not whatever "residual claim" the question speaks of.
Tangible assets are assets which can be felt and have a physical form, but are not necessarily fixed assets.
Net working capital is current assets minus current liabilities.
'The only definiiton that seems correct is the current asset one, although they word it inappropriately.
Answer:
(a) Discount on bonds payable ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES
(b) Interest expense (credit balance) ⇒ WHEN INTEREST EXPENSE IS INCLUDED IN THE INCOME STATEMENT IT HAS A DEBIT BALANCE, WHEN IT HAS A CREDIT BALANCE IT MEANS IT IS A LIABILITY AND MUST BE REPORTED IN THE BALANCE SHEET
(c) Unamortized bond issue costs ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET, IT IS A CONTRA LIABILITY ACCOUNT
(d) Gain on repurchase of debt ⇒ SHOULD BE REPORTED IN THE INCOME STATEMENT AS PART OF OTHER GAINS AND LOSSES
(e) Mortgage payable (payable in equal amounts over next 3 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES (UNDER CURRENT AND LONG TERM LIABILITIES)
(f) Debenture bonds payable (maturing in 5 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES
(g) Notes payable (due in 4 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES
(h) Premium on bonds payable ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES (REDUCES BONDS PAYABLE)
(i) Bonds payable (due in 3 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES
Answer:
1. These long-term bonds are issued by institutions such as Ginnie Mae, the Federal Farm Credit Bank, and the TVA. Many of these securities are guaranteed by the federal government. - Agency security
2. These long-term debt instruments are issued by the U.S. Treasury to finance the deficits of the federal government. - Government Security
3. These are loans to households or firms to purchase housing, land, or other real structures, where the structure or land itself serves as collateral for the loans - Mortgages
4. These are equity claims on the net income and assets of a corporation - Stocks
5. State and local bonds are long-term debt instruments issued by state and local governments to finance expenditures on schools, roads, and other large programs - Multiple Bond
6. These long-term bonds are issued by corporations with very strong credit ratings - Corporate bonds
Eggs, from all the recipes I see.
Answer:
Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.
Note for asset and expense accounts when they increase you debit and when they reduce you credit.
The first entry
On December 1 : Debit Prepaid Rent account for $6,600
Narration: Prepaid rent for 6 months
Balance: $6,600
Since the rent is for 6 months, monthly payment will be= 6,600/6= $1,100
On December 31 post the following adjusting entries
December 31 : Debit Rent Expense $1,100
Narration: Rent for December
Balance: $1,100
December 31 : Credit Prepaid Rent $1,100
Narration: Rent for December
Balance: $5,500
