Kent Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement of affairs reflects the following amounts: Assets Book value Estimated Market value P300,000 Pledged with fully secured creditors Pledged with partially secured creditors P370,000 120,000 180,000 Free Assets 420,000 320,000 Liabilities With priority 70,000 Fully secured Partially secured 260,000 200,000 Unsecured 540,000

Q: cash book

A: At the time of Dissolution , all Accounts of balance sheet transferred to Realisation Account except…

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: What's the difference between a cash business and cash accounting?

A: A business that runs primarily on cash transactions is known as a cash business. The business may…

Q: What do you call to the evidence of receipt of cash by the seller? 2. What do you call to the one…

A: 1. whatever evidence that you received by the seller for receiving the cash has formal format it is…

Q: where would borrowed cash go on transaction worksheet

A: The borrowed cash is the amount of cash received by the entity through many ways - like from banks,…

Q: Why is careful management of accounts receivable and accounts payable so essential to ensuring…

A: Accounts receivables are resources that are generally classified as current assets, implying that…

Q: What is cash payment

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: What are credit terms?

A: Credit terms or terms of credit It is the vender purchaser agreement that rundowns the planning and…

Q: What does it mean for CHS to securitize its receivables?

A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Which function of money allows individuals to make payment now in return for goods and services? A.…

A: Medium of exchange : Money serves as a medium of exchange. Money facilitates exchange of goods…

Q: Using an example, compare and contrast physical delivery and cash settlement?

A: The two most prevalent stock derivatives traded on a stock market are futures and options. These are…

Q: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

Q: at is the relationship of Debt (Loans) to Borrowers to Financial Intermediaries?

A: The financial intermediaries are very important in the financial world and transactions and there…

Q: What is the primary difference between cash and accrual accounting?

A: The business revenues and expenses can be recorded on the basis of cash or accrual.

Q: What two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

Q: What is a "proof of cash? What purpose does it serve?

A: A four-column bank statement prepared by auditors is called proof of cash. It has a detailed…

Q: Debit

A: Lost or stolen debit or credit both can cause problems. However the problem is more with the debit…

Q: how do deposit intistitutions differ from non-deposit institutions?

A: A financial institution is an intermediary business entity that helps to supply money from surplus…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: Is Capital debit or credit?

A: As per Business Entity concept Business is treated as an entity which is different from Proprietor.…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: Explain Issuance of loans to unworthy entities with examples

A: Issuance of loan to unworthy entities means granting of loans to the entities having a poor…

Q: What is a secured loan?

A: Secured Loan :  it is a type of loan in which lender lend money on the basis of collateral or…

Q: Accounting If cash collected from customers is not yet recorded as revenue, what happens to it?

A: Sales of cash and the collection of accounts receivable are two ways to obtain money. The cash sales…

Q: What are the several components of a deposite institution 's liquidity plan? How can such a plan…

A: A liquidity shortage refers to a situation where an institution, such as a bank or other financial…

Q: What are the types of debts that must be repaid quickly called?

A: Generally having to pay money to another person or item The majority of debts, including credit card…

Q: What is Secured Borrowing?

A:

Q: What is the difference between cash expenses and non cash expenses?

A: Rent expense, salary expenses, insurance expense, depreciation expense, amortization expense, and…

Q: What are the primary motives for holding cash?

A: Introduction: Cash is also recognized as most liquid and lesser productive assets of the company.…

Q: why loan officer prefer accrual basis accounting

A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…

Q: Which of the following are the instruments of money market? Select one: a. All of the above b. None…

A: Following are the instruments of money market

Q: Why is cash management important?

A: Cash management is a technique used to manage cash of the entity. It helps in managing the cash that…

Q: What is the main purpose of loan loss provisioning? Explain the concepts of incurred loss model and…

A: The loan loss provision is the cash reserve created by the banks for the future credit risk. The…