Explain the reason for representation of “gift cards”, which is listed as current liabilities.

Question

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Answer 1

Question

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

c.

To determine

Compute the current ratio for each company.

d.

To determine

Compute the quick ratio for each company.

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

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1.3 1.2.5 za When using a computerised accounting system, the paper work will be reduced in the organisation. Calculate the omitting figures: Enter only the answer next to the question number (1.3.1-1.3.5) in the NOTE. Round off to TWO decimals. VAT report of Comfy shoes as at 30 April 2021 OUTPUT TAX INPUT TAX NETT TAX Tax Gross Tax(15%) Gross (15%) Standard 75 614,04 1.3.1 Capital 1.3.2 9 893,36 94 924,94 Tax (15%) 1.3.3 Gross 484 782,70 75 849,08 -9 893,36 -75 849,08 Bad Debts TOTAL 1.3.4 4 400,00 1 922,27 14 737,42 -1 348,36 1.3.5 (5 x 2) (10

Answer 2

Question

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

c.

To determine

Compute the current ratio for each company.

d.

To determine

Compute the quick ratio for each company.

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

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Answer 3

Question

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

c.

To determine

Compute the current ratio for each company.

d.

To determine

Compute the quick ratio for each company.

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

Expert Solution & Answer

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Answer 4

Question

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

c.

To determine

Compute the current ratio for each company.

d.

To determine

Compute the quick ratio for each company.

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

c.

To determine

Compute the current ratio for each company.

d.

To determine

Compute the quick ratio for each company.

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

Answer 6

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

Answer 7

Chapter 10, Problem 5MAD

a.

To determine

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

Answer 8

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

Answer 9

b.

To determine

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

Answer 10

c.

To determine

Compute the current ratio for each company.

Answer 11

c.

To determine

Compute the current ratio for each company.

Answer 12

d.

To determine

Compute the quick ratio for each company.

Answer 13

d.

To determine

Compute the quick ratio for each company.

Answer 14

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

Answer 15

e.

To determine

Compare the two company’s results of current ratio and quick ratio.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQ Ch. 10 - Prob. 4DQ Ch. 10 - Prob. 5DQ Ch. 10 - Prob. 6DQ Ch. 10 - Prob. 7DQ Ch. 10 - Installment notes require equal periodic payments....Ch. 10 - Prob. 9DQ Ch. 10 - Prob. 10DQ

Explain the reason for representation of “gift cards”, which is listed as current liabilities.

Solution Summary: The author explains that gift cards represent unearned revenue and deferred revenues. Credit card loans are short-term receivables of company.

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Explain the reason for representation of “gift cards”, which is listed as current liabilities.

Indicate whether the “credit card loans” can be considered as part of quick assets for Company C’s computation of the quick ratios.

Compute the current ratio for each company.

Compute the quick ratio for each company.

Compare the two company’s results of current ratio and quick ratio.

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Chapter 10 Solutions