Caribeean Case

Answer of the Question no. 1 1. lay Regina social clubs flowing assets and its topical liabilities. What characteristic makes an asset or financial obligation current? (4 marks) underway Assets: * Cash * describe receivable * Inventory Current Liabilities: * Account account tamp down overable * Interest Payable * Salary payable The main characteristic of current assets is, it burn be pronto converted to cash. ordinarily 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 keep companys debts or obligations that countenance to pay off in spite of appearance a short circuit catch of time, normally in 1 year, atomic number 18 consider as current liabilities. It includes short landmark debt, account payable, accrued liabilities and other debts. 2. differentiate Regina Companys noncurrent assets and its noncurrent liabilities. What characteristic makes an asset or liability noncurrent? (4 marks) Non-Current Assets: * Land * Buildings * Accumulated disparagement (it is a contra asset, usually deducted from long term assets such as buildings, machineries etc.

) Non-Current Liabilities: * Mortgage Payable * Bond Payable law: * Common Sh atomic number 18 * Retain Earning * Dividend declared (Dividend declared is describe in the statement of changes in holdholders equity. Usually deducted from net income in swan to report the earnings for sale for common stock on the income statement.) ! 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 wish to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper