0
Still curious? Ask our experts.
Chat with our AI personalities
Beau
Fran
DevinAdd your answer:
Earn +20 pts
Which kind of problems are the easiest to solve?
asset and liability management
Failure to record a liability will probably?
result in a overstated net income
I'm seeing a negative sign in front of a number under the AUM column. What does this mean?
It means that something that you consider to be an asset, with some positive value, is regarded as a liability by the market.
What the mean of impairment of the assetsplease example?
impairment loss f an asset is the reduction in the income generating ability of that asset. it is calculated as: carrying value less recoverable amount. -carryibg value is the cost less accumulated depreciation -recoverable amount is the higher amount between the net selling price of an asset and its value in use.
What are accrued expenses reported on the balance sheet as?
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
