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: 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: A company manufactures toy airplanes Information on its labor costs follow Sales commissions P5 per…

A: Formula: Budgeted labor cost = ( Sales commission x sales units ) + Administration cost

Q: How important to manage the money?

A: The elements or the medium that is used in order to buy or sell the goods is referred to as money,…

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: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

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: Debit

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

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 is the purpose of the accrual accounting method, and how does it differ from the cash…

A: The revenue and expenses are recorded in the books differently. Under cash basis accounting, the…

Q: What is Secured Borrowing?

A:

Q: Why are payments received from customers in advance, for either services to be performed and/or for…

A: Advance payment received from the customer there are two reasons which are mentioned are as follows:…

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: How are refundable deposits and customer advances similar? How do they differ?

A: Refundable Deposits: Refundable deposits are that money in advance offered by the customer. It is a…

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: Describe about the Cash rebates obligation.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…