minutes) a. The effects of a long-term capital lease on a lease are much like that of equipment purchases using installment payment debt. This type of lease transfers all the benefits and risks to the ownership is accounted for as an asset and liability incurrence by the lessee. If a lease is classified as capitalized‚ both the leased asset and the lease obligation are recognized on the balance sheet. b. A lessee account for a capital lease if at its inception the lease meets any four criteria;
Premium Balance sheet Lease Asset
INTRODUCTION TO ACCOUNTING AND BUSINESS QUESTION INFORMATION Number |Objective |Description |Difficulty |Time |AACSB |AICPA |SS |GL | |EO1-1 |1-1 | |Easy |5 min |Analytic |BB-Industry | | | |EO1-2 |1-1 | |Easy |5 min |Analytic |BB-Industry | | | |EO1-3 |1-1 | |Easy |5 min |Analytic |BB-Industry | | | |EO1-4 |1-1 | |Easy |5 min |Analytic |BB-Industry | | | |EO1-5 |1-1 | |Easy |5 min |Analytic |BB-Industry | | | |EO1-6 |1-2 | |Easy |5 min |Analytic |FN-Measurement | | | |EO1-7
Premium Balance sheet Generally Accepted Accounting Principles Income statement
____ ____ ____ ____ ____ 1. Accounting is the language of business. 2. The relationship among assets‚ liabilities‚ and owner’s equity can be written as an equation. 3. The accounting equation does not have to be in balance to be correct. 4. A business that performs an activity for a fee is a service business. 5. The amount in an account is an account balance. 6. The capital account is a liability account. 7. Double lines below a column total mean that the totals have been verified as correct. 8. A
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
due in three months. 1. Decide if a transaction took place. Yes – received cash and gave a note payable. 2. Identify the accounts affected. Cash and Notes Payable 3. Classify each account affected. Cash is an Asset (A) and Notes Payable is a Liability (L) 4. Identify direction and amount. Cash (A) + $15‚000 = Notes payable + $15‚000. 5. Ensure the accounting equation is in balance. Yes – see below. (c) Acquire a $15‚000 truck and $5‚000 worth of equipment. 1. Decide if a transaction took
Premium Liability Balance sheet Asset
and that the proportion of sales represented by operating expenses‚ current assets‚ net fixed assets‚ and current liabilities will be the same as for 2010. Thus‚ we can create Zapatera’s pro forma balance sheet for 2011 by using its 2010 values as references. When finding the 2011 values‚ we calculate ($15M) ∗ (appropriate %) for current assets‚ net fixed assets‚ and current liabilities (where the “appropriate %” values are 25%‚ 50%‚ and 25%‚ respectively). The percentages we use are the same proportions
Premium Balance sheet Generally Accepted Accounting Principles Liability
1.0 EXECUTIVE SUMMARY INTRODUCTION BORDAGOL store is a start-up rice and corn grits wholesale and retail store that will be established in Public Market‚ Digos City‚ Davao del Sur. BURDAGOL expects to catch the interest of a regular loyal customer base with its broad variety of rice. It will provide a good variety of rice at an affordable price. BORDAGOL is the answer to the increasing demand of rice in Digos City due to its increasing population. Rice is part of the culture of the Filipinos
Premium Marketing Business Rice
Brief Exercise 1-3 | | Your answer is correct. | Indicate in which part of the statement of cash flows each item would appear: operating activities‚ investing activities‚ or financing activities. (a) | | Operating activities | | Cash received from customers. | | | | | | (b) | | Financing activities | | Cash paid to stockholders (dividends). | | | | | | (c) | | Financing activities | | Cash received from issuing new common stock. | | | | | | (d) | | Operating
Premium Balance sheet Generally Accepted Accounting Principles Revenue
Solutions to Lecture Activities ACCT 1046 Introductory Accounting Semester 1‚ 2010 Lecture 1 Unit 1 – Business Decision Making and Accounting Lecture Activity 1 1. The accounting information system comprises four main procedures: analysis‚ recording‚ reporting and identification. The order in which they occur is: a) Reporting‚ analysis‚ recording‚ identification b) Identification‚ analysis‚ recording‚ reporting c) Analysis‚ identification‚ recording‚ reporting d) Identification‚ recording
Premium Balance sheet Asset Generally Accepted Accounting Principles
fresh start reporting because the estimated reorganization value of $2‚000‚000 is less than the postpetition liabilities and allowed claims. | Estimated reorganization value | | $2‚000‚000 | | Liabilities: | | | | Postpetition liabilities | $1‚200‚000 | | | Prepetition liabilities | 1‚500‚000 | | | Fully secured debt | 900‚000 | 3‚600‚000 | | Excess liabilities over reorganization value | | $1‚600‚000 | 2 Old stockholders must retain less than a 50% interest in the
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
relying on financial statements. By applying ratios to a set of financial statements‚ we can better understand financial performance. Statement of the Problem The debt ratio compares a company ’s total debt (the sum of current liabilities and long-term liabilities) to its total assets (the sum of current assets‚ fixed assets‚ and other assets such as ’goodwill ’)‚ which is used to gain a general idea as to the amount of leverage being used by a company. It compares the funds provided by creditors
Premium Balance sheet Generally Accepted Accounting Principles Asset