Answer
--TRUE.
--Cash received from customer may result in a current liability in cases where the customer has paid BEFORE purchasing the goods, or before the service has been received by hi,.
--In those cases, cash received is treated as "Unearned revenues" and recorded as a CURRENT LIABILITY.
Cash received from customers may result in a current liability True O False
The direct method separately lists operating cash receipts, such as cash received from customers. True or False True False
Cash outflows result from increases in asset accounts and decreases in liability and equity accounts. True False
In accrual accounting, revenue may be eamed prior to or after cash is received. True False
True or False: A liability should be classified on the balance sheet as a "current liability when the company expects to decrease or satisfy the liability within one year or the operating cycle, whichever is longer. Select one: True False
Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable. True or False True False
Declaring dividends often creates a current liability. True False
A single liability cannot be divided between current and non current liabilities. True False
answers for the red x's $880,000 40,000 Cash receipts: Cash received from customers Cash received from issuing common stock Cash payments: Cash paid for operating expenses Cash paid for land Cash paid as dividends The cash balance as of June 1, 2017, was $50,000. 758,000 150,000 10,000 Prepare a statement of cash flows for Paradise Travel Service for the year ended May 31, 2018. Use the minus sign to indicate cash outflows, cash payments and decreases in cash Paradise Travel...
A Limited Liability Company (LLC) can be formed with only 1 member. True False QUESTION 11 The type of liability where every party is only liable for their pro-rata share of the indemnity is called: O Joint Liability Several Liability Joint and Several Liability All of the above QUESTION 12 The Financing form where a company sells the Accounts Receivable due from its customers is called: Account Receivable Credit Line Factoring Asset Backed Loan SBA Loan Indemnity is a sum...
1. Commercial General Liability covers injuries to Third Parties on the premises as the result of negligence in connection with the medical aspects of its premises. True False 2. Automobile liability coverage protects against loss arising out of the ownership, maintenance, or use of automobiles and their equipment. It extends to vehicles “you own, hire or borrow, and those you do not own but may be responsible for, “such as the personal car of an employee used in a home...