Current liability: Current Liability are those liability which is payable by the company within the one year. These liabilities are shown in the balance sheet of the company such as received in advance, outstanding expenses, account payable, and creditor. Long term liability: Long Term liabilities are those liability which is payable after the one year and more. These liabilities are shown in the balance sheet of the company such as long term loans and borrowings, equity and preference share and long term bonds. To explain: distinction between current and long term liability.

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 1DQ

To determine

Current liability:

Current Liability are those liability which is payable by the company within the one year. These liabilities are shown in the balance sheet of the company such as received in advance, outstanding expenses, account payable, and creditor.

Long term liability: Long Term liabilities are those liability which is payable after the one year and more. These liabilities are shown in the balance sheet of the company such as long term loans and borrowings, equity and preference share and long term bonds.

To explain: distinction between current and long term liability.

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On December 31, 2018, Blackpink Company, a financing institution lent ₱15,000,000 to YG Corp. due 3 years after. The loan is supported by an 12% note receivable. Based on the company’s initial estimates the present value of the 12 months expected credit loss (ECL) discounted at 10% is at 2,000,000. The probability of default (PD) is at 7%. Blackpink Company was able to collect interest as it became due at the end of 2019. There was no evidence of significant increase in credit risk by the end 2019 and that the receivable is determined to have “low credit risk”. There were no changes in its initial estimate of the 12 months expected credit loss either. By the end of 2020, Blackpink Company was able to collect interest as it became due. Based on available forward-looking information (determinable without undue cost or effort), however, there is evidence that there was a significant increase in credit risk by the end of 2020. Blackpink Company therefore had to change its basis…

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 1DQ

To determine

Current liability:

Current Liability are those liability which is payable by the company within the one year. These liabilities are shown in the balance sheet of the company such as received in advance, outstanding expenses, account payable, and creditor.

Long term liability: Long Term liabilities are those liability which is payable after the one year and more. These liabilities are shown in the balance sheet of the company such as long term loans and borrowings, equity and preference share and long term bonds.

To explain: distinction between current and long term liability.

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Check out a sample textbook solution

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Answer 3

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 1DQ

To determine

Current liability:

Current Liability are those liability which is payable by the company within the one year. These liabilities are shown in the balance sheet of the company such as received in advance, outstanding expenses, account payable, and creditor.

Long term liability: Long Term liabilities are those liability which is payable after the one year and more. These liabilities are shown in the balance sheet of the company such as long term loans and borrowings, equity and preference share and long term bonds.

To explain: distinction between current and long term liability.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 1DQ

To determine