Using the data given below, compute for the total amount of items that meet the definition of financial liability Bank overdraft P 100,000 Accounts payable 1,200,000 Notes payable 500,000 Loans payable 1,800,000 Income tax payable 120,000 Warranty obligations 180,000 Deferred revenue 240,000

Using the data given below, compute for the total amount of items that meet the definition of financial liability Bank overdraft P 100,000 Accounts payable 1,200,000 Notes payable 500,000 Loans payable 1,800,000 Income tax payable 120,000 Warranty obligations 180,000 Deferred revenue 240,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using the data given below, compute for the total

amount of items that meet the definition of financial

liability

Bank overdraft

P 100,000

Accounts payable

1,200,000

Notes payable

500,000

Loans payable

1,800,000

Income tax payable

120,000

Warranty obligations

180,000

Deferred revenue

240,000

Cumulative, redeemable preference

shares at the option of the holder

1,000,000

Non-cumulative, non-redeemable

preference shares

2,000,000

a. P4,900,000c. P4,600,000

b. P3,620,000 d. P4,500,000

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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