Liability: Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability. Long-term liability: Long-term liabilities are the debt or obligation due only after one year . Bonds payable and mortgage payable are the examples of long-term liabilities. Current liability: Current liabilities are the debt or obligation due within one year . Accounts payable, accrued wages and taxes payable are the examples of current liabilities. To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Question

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Answer 1

Question

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

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Ming Chen started a business and had the following transactions in June. a. Owner invested $60,000 cash in the company along with $15,000 of equipment. b. The company paid $2,000 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected $1,600 cash. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. f. The company purchased additional equipment for $5,000 cash. g. The company paid an assistant $2,400 cash as wages for the month. h. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $18,000 cash to settle the liability created in transaction c. j. The owner withdrew $1,500 cash from the company for personal use.

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Answer 2

Question

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

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Answer 3

Question

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

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Answer 4

Question

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

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Answer 5

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

Answer 6

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

Answer 7

Chapter 10, Problem 1Q

To determine

Liability:

Liability is the financial obligation or debt that happens at the time of running the business. Liability is broadly classified into two; current liability and long-term liability.

Long-term liability:

Long-term liabilities are the debt or obligation due only after one year. Bonds payable and mortgage payable are the examples of long-term liabilities.

Current liability:

Current liabilities are the debt or obligation due within one year. Accounts payable, accrued wages and taxes payable are the examples of current liabilities.

To Explain: If the belief of LR that a current liability is a debt, that is paid within one year is correct or not.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution:

Yes, LR is correct. Current liability is a debt that can be expected to be paid within one year.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Current liabilities are the debt or obligation that can be paid within one year. If the debt can be paid more than one year is not coming under the category of current liabilities.

Answer 12

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - 6 What are long-term liabilities? Give three...Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

Concept explainers

Answer to Problem 1Q

Explanation of Solution

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