True or false ______Magazine subscriptions and airline ticket sales both result in unearned revenues. ______Discount on Notes Payable is a contra account to Notes Payable on the balance sheet. ______ All long-term debt maturing within the next year must be classified as a current liability on the balance sheet. ______A short-term obligation can be excluded from current liabilities if the company intends to refinance it on a long-term basis.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
True or false
______Magazine subscriptions and airline ticket sales both result in unearned revenues.
______Discount on Notes Payable is a contra account to Notes Payable on the balance sheet.
______ All long-term debt maturing within the next year must be classified as a current liability on the balance sheet.
______A short-term obligation can be excluded from current liabilities if the company intends to refinance it on a long-term basis.
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