Respond to the following in a minimum of 125 words:
What differentiates a current liability from a long-term liability? Share at least two examples of each. What are the differences in accounting for these two types of liabilities?
Current libilities:
It is a short term obligations which are due with in an operating cycle..normally operating cycle is 12 months for all months. Normally current liabilities are paid using realised proceeds from current assets.
Eg: Creditors for supplies, Rent payable, Salaries payable
Non current liabilities/ long term liabilities.
Any obligations which are payable after operating cycle or after 12 months (usually) is termed as long term liability.
Eg: Secrity deposit received , debentures, long term provisions like gratuity (It can be short term , if employee resigns and is payable with in 12 months).
Accounting:
There is no difference in accounting except disclosures in balance sheet. accounting is based on normal debit and credit principles.
Respond to the following in a minimum of 125 words: What differentiates a current liability from...
Respond to the following in a minimum of 175 words: Two common types of leases are operating and financing leases. In your own words, describe and share examples of each. What are the major differences in accounting for each of these two types of leases?
Respond to the following in a minimum of 125 words: What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How does the accounting basis (cash vs. accrual) an organization chooses change these differences?
Respond to the following in a minimum of 125 words: What is a bond? What types of bonds are there? How are bonds valued? What is the relationship that interest rates have in relation to bond values?
Respond to the following in a minimum of 175 words: What are some of the key differences between financial and managerial accounting? How do these differences impact the type of information that must be gathered and reported? What are the different types of decisions that users of financial accounting information must make? What are the different types of decisions that users of managerial accounting information must make?
Respond to the following in a minimum of 125 words: What is an intangible Asset? What are some approaches to value an intangible asset? What are the useful life of intangibles?
Respond to the following in a minimum of 125 words: What is depreciation? Discuss the various depreciation methods. What is the difference between depreciation, depletion and amortization.
Respond to the following in a minimum of 125 words: In what financial documents does an inventory valuation appear? How does the valuation method an organization chooses affect the final valuation figure. In what ways is that figure important to an organization?
Respond to the following in a minimum of 175 words: Share, in your own words, the difference between the fair value and equity methods of accounting for investments. In what situations would an accountant use one method over the other? What drawbacks, if any, are associated with each method?
Respond to the following in a minimum of 175 words: Discuss the differences and relationship between a business level strategy and a corporate level strategy. Use examples from your own company (or a company with which you are familiar) in order to illustrate this differences and relationship.
Respond to the following in a minimum of 125 words: Working capital assets are comprised of cash, accounts receivables, and inventory. Is one more important to manage than another? Why? Why not? Which of these are the most difficult to manage?