ACC 221 Case 3-2

ACC 221 Case 3-2 - prepayment is classified as a current...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Case 3-2 Rachel Keenan 1. Cash, is a current asset however sometime on a balance sheet cash can be listed under investments in the case it is now as “restricted cash.” You can tell the two apart when there is a need for restricted cash. 2. Accounts Receivable, can be current and noncurrent. A portion of the payment might not be due for one or more years. 3. Investments, liquid investments not classified as cash equivalents are reported as either short term investments sometimes called temporary investments or short term marketable securities or investments a noncurrent asset. 4. Prepaid expenses, if rent on an office building were prepaid for one year, then the entire
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: prepayment is classified as a current asset however if rent were prepaid for a period extending beyond the coming year a portion of the prepayment is classified as another asset a noncurrent asset. 5. Notes payable, can be a current liability or a long term liability. A portion of the payment might not be satisfied with in one year or the operating cycle whichever is longer. 6. Bonds Payable, are classified in the balance sheet as a current liability, however, in some cases it might be a long term liability. You can distinguish the two apart by knowing if the bond needs to be satisfied in one year or the operating cycle which ever might be longer....
View Full Document

This note was uploaded on 02/11/2009 for the course ACC 22334 taught by Professor Clark during the Spring '09 term at VCCS.

Ask a homework question - tutors are online