1SOL5.0 - ValenciaCommunityCollege Assignment5.0...

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Valencia Community College Assignment 5.0 Solution – Battiste 2. The assets that go into the current asset section of the balance sheet are assets expected to be collected, sold or consumed within one year or operating cycle, whichever is longer, plus cash. Thus, the current asset section is for “short-term” or “liquid” type assets. Prepaid rent is a CA. So is cash, by definition, and office supplies and accounts receivable. 3. A current liability is a liability that must be paid or performed within one year. Performed refers to unearned revenues which are debts to customers who have paid for a good or service but haven’t received the good or service yet. For example, if you go to Burdines and pay $50 to get a gift card for your grandmom for Christmas, Burdines owes G-Mom $50 worth of goods. The company that received the payment owes the customer something. If it must be performed, or done, within a year it is a current liability. A long-term liability is a liability that must be paid or performed in
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1SOL5.0 - ValenciaCommunityCollege Assignment5.0...

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