A current liability for 1) the principal payments that will be coming due within one year after the balance sheet date, and 2) any accrued interest that is owed as of the balance sheet date. (Future interest is not reported as a liability until the accounting periods in which the interest...
This answer could result from considering only the current portion of the mortgage payable as equivalent to working capital. The current portion of the mortgage payable is a current liability and so it is a component of working capital. However, working capital consists of all current assets minus...
The mortgage loan payable represents the nominal amount of the loan. There is an obligation for the business entity to make the repayment, therefore...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your ...
A receivable is a liability because it represents a right to receive cash in the future. a. True. b. False. The discount on bonds payable ledger account is a contra liability account. a. True b. False Accounts payable is a typical current liability accou...
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Some long-term debts ,such as mortgage loans,are payable in a series of monthly or quarterly installments.In these cases,the principal amount due within one year(or the operating)is regarded as a current liability,and the remainder of the obligation is classified as a long-term liability....
Working capital is the difference between a business’s current assets (e.g., cash, accounts receivable, and inventories) and current liabilities (e.g., accounts payable and short-term debt). It’s an essential financial metric that helps ensure a company has enough resources to manage its ...
Example 2: Receiving a Business Loan You are approved for abusiness loanof $9,500. When you receive the money, your cash increases by $9,500, and your loan liability increases by $9,500. In your ledger, you debit the cash (asset) account and credit the loan payable (liability) accoun...
What is usually shown on the internet for a deferred annuity quote is its current interest rate. Generally, the interest rate quoted is higher if you choose a longer growth period. If you should die during the growth period, your account values typically are payable to your beneficiaries....
Loans can besecuredorunsecured. Mortgages and car loans are secured loans, as they are both backed or secured by collateral. In these cases, the collateral is theassetfor which the loan is taken out, so the collateral for a mortgage is the home, while the vehicle secures a car loan. Bor...