Liability Essay Examples
Introduction Section I: Problem Description Susan Wong graduated from State University and was hired by a computer firm in the Washington, D.C. area. In college, her parents provided money for Susan’s gas, telephone, and credit cards. Susan’s mother and father created a bank account to address her financial needs. Susan never had to be concerned…
1. The allowance for doubtful accounts is fairly presented in amount. * Valuation or allocation assertion 2. All accounts payable owed as of the balance sheet date are included in the financial statements. * Existence or occurrence assertion 3. All purchase returns recorded in the general ledger are valid. * Existence or occurrence assertion 4….
The basic accounting equation is: Assets = Liabilities + Stockholders’ Equity. When looking at the balance sheet one can assume that assets must balance out each transaction and balance the claims to the assets (Kimmel, 2010). A balance sheet provides Assets of the company first and foremost, then Liabilities and Stockholders’ Equity and last retained…
Book keeping it also referred as the keeping of book. Book keeping is the process of keeping full, accurate, up-to-date business records. Proper methods can help businesses effectively manage cash flow, stay abreast of profit and losses, and develop plans for the future based on financial trends. Furthermore, keeping accurate book is required by both…
Asset and Liability problems: The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms. Calculate the missing amounts for each firm. Firm AFirm BFirm C Total assets, 12/31/10$401,000 $531,000$334,000 Total liabilities, 12/31/10222,000 143,000___________ Paid-in capital, 12/31/1085,000[pic]42,000 Retained earnings, 12/31/10[pic]319,000___________ Net…
From these equations, the higher the ratios meant the better of the company’s financial condition, or more liquidity. The acceptable ratios vary from different industries. In general, company’s quick ratio should be 1 or higher, and its current ratio should be above 1. 5 to be considered liquid. In the comparison between two companies’ ratios,…
