ACTG 2011 Chapter Notes - Chapter 9: European Route E95, Current Liability, Current Asset
25 Mar 2016
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24,000: amount of unused gift cards would be a current liability of k (62k - 24k, current asset/current liability > increase current asset and current liability. > if current ratio > 1, ratio will decrease. > if current ratio < 1, ratio will increase: june has yet to provide a good or service. E9-7: the principle portion of the mortgage pmt (293650 - interest) would be classified as a current liability. Reason why: its due within the coming year: the 125k withheld would be a current liability. Reason: it"s payable to the government within the coming year: the ,500 deposit would be considered a current liability, 150k due in dec. current liability. 150k in next year is a non-current liability: k is considered a current liability. Interest rate: 7: present value of principle amount, present value of payments. Pv = payment (1-(1+interest) ^ (-period)) / interest. Pv = 180,000 (1- (1+0. 07)^ -6) / 0. 07.
