Acc400 Week 3

Week 3 Individual - Ch. 10 1, 7, 8, & 19; BE10-1; BYP10-1 Ch. 11: BYP11-10, 11-1 1. Georgia Lazenby believes a flow liability is a debt that spate be expected to be paid in unification class. Is Georgia correct? Explain. Yes, a flow liability is a short-term liability that is to be paid within the write up cycle which is one course or less. 7. (a) What argon long liabilities? Give two examples. Long-term liabilities are debts that are non to be paid within an accounting cycle (one year or less) Two examples of long-term liabilities are owes and start up business loans. (b) What is a hamper? A vex composition is a long term liability that is used by a company as capital. It is repaid by the company to an investor.   8. air these types of bonds: (a) Secured and unbarred. A secured bond is standed by collateral and an unsecured bond is not backed with collateral. Collateral is represented with assets that are surrendered if the bond is not repaid. (b) Convertible and callable. A convertible bond butt be converted into stock by an investor and a callable bond is one that can be bought back by the company from the investor before the bond r to from each one onees maturity. 19. Valentin Zukovsky says that liquidity and solvency are the alike thing. Is he correct? If not, how do they differ? No. Liquidity is a measure of how good business assets can be converted to cash and solvency is the pay off of profit a business has in comparison to its long-term debt. BE10-1 Kananga Company has these obligations at December 31: (a) a demarcation payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $200,000 payable in ecstasy $20,000 annual payments, (c) affair payable of $15,000 on the mortgage, and (d) accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability. A. Not a current liability B. The first 20,000 pa yment is a current liability and the 180,00 ! balance is a long-term debt...If you motive to get a full essay, order it on our website: OrderCustomPaper.com

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