Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $15 million. The machinery can be sold to the Romula
ns today for $14.3 million. Klingon's current balance sheet shows net fixed assets of $12 million, current liabilities of $840,000, and net working capital of $223,000. If all the current accounts were liquidated today, the company would receive $1.05 million cash. What is the book value of Klingon's assets today
That is correct this is a liability. That is because a liability refers to being legally responsible for something. In this scenario, since they paid you $200 for hair coloring then you owe the client that. Meaning that you are legally responsible to provide hair coloring services to the client and until you do that you are liable.
