Caribeean Case

Answer of the Question no. 1 1. lay Regina caller-outs flowing additions and its new liabilities. What characteristic makes an asset or financial obligation current? (4 marks) underway Assets: * Cash * count receivable * Inventory Current Liabilities: * Account account counter overable * Interest Payable * Salary payable The main characteristic of current assets is, it batch be pronto converted to cash. unremarkably current assets denotes cash, accounts receivable, inventory, marketable securities, prepaid expenses and different liquid assets which can be liquated indoors 12 months. On the other side, if the caller-ups debts or obligations that hold to pay off indoors a swindle finale of time, normally in 1 year, atomic number 18 consider as current liabilities. It includes short marge debt, account payable, accrued liabilities and other debts. 2. reveal Regina Companys noncurrent assets and its noncurren t liabilities. What characteristic makes an asset or liability noncurrent? (4 marks) Non-Current Assets: * Land * Buildings * Accumulated derogation (it is a contra asset, usually deducted from long term assets such as buildings, machineries etc.

) Non-Current Liabilities: * Mortgage Payable * Bond Payable beauteousness: * Common Sh ar * Retain Earning * Dividend declared (Dividend declared is account in the statement of changes in sourceholders equity. Usually deducted from net income in swan to report the earnings for sale for common stock on the income statemen t.) If the assets cannot be liquid within! a short period of time, usually takes more than a year or more to liquid it into cash are consider as non-current assets. Lands, machineries, buildings and so forth consider as non-current assets. With the same period of time frame, if a companys debts or obligations which have to pay within more than one year are consider as non-current liabilities. Mortgage payable, attach payable, long term notes and so on can be a good...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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