
Concept explainers
Current assets: Current assets are assets which are expected to be converted into cash and cash equivalents within in the period of 1 year. Current assets can also be utilized to pay current liabilities of the company. Current asset include cash, short term investments,
Long term investments: Long term investments are noncurrent assets which are not meant to be converted into cash and cash equivalent within in the period of 1 year. These are meant to benefit company for more than one year.
Plant assets: Also referred as fixed assets or long term assets, are assets with a useful life of more than one year and are generally subjected to
Intangible assets: Intangible assets are the non visible assets which generally have a beneficial life of more than one accounting period.
Current liabilities: Current liabilities are liabilities which are expected to be converted into cash and cash equivalents within in the period of 1 year. Current assets can also be utilized to pay current liabilities of the company. Current asset include cash, short term investments, accounts receivables, inventories, prepaid assets and other current assets.
Long term liabilities: Long term liabilities are liabilities which are not due to be discharged within a time frame of one year.
To identify: The relevant category of

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Chapter 3 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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- Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Crane can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead 1A Fixed overhead Opportunity cost Purchase price Totals Make A Buy $ SA Net Income Increase (Decrease) $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offerarrow_forwardThe following is a list of balances relating to Phiri Properties Ltd during 2024. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained. These were as follows: Debit balance in debtors account 01/01/2024 66,300 Credit balance in creditors account 01/01/2024 50,600 Sunday credit balance on debtors ledger Goods purchased on credit 724 257,919 Goods sold on credit Cash received from debtors Cash paid to suppliers Discount received Discount allowed Cash purchases Cash sales Bad Debts written off Interest on overdue account of customers 323,614 299,149 210,522 2,663 2,930 3,627 5,922 3,651 277 Returns outwards 2,926 Return inwards 2,805 Accounts settled by contra between debtors and creditors ledgers 1,106 Credit balances in debtors ledgers 31/12/2024. 815 Debit balances in creditors ledger 31/12/2024.698 Required: Prepare the debtors control account as at 31/12/2024. Prepare the creditors control account…arrow_forwardSolnarrow_forward
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