Caribeean Case

Answer of the Question no. 1
1. lay Regina Companys flowing assets and its current liabilities. What characteristic makes an asset or financial obligation current? (4 marks)
underway Assets:
* Cash
* Account receivable
* Inventory
Current Liabilities:
* Account account take overable
* Interest Payable
* Salary payable

The main characteristic of current assets is, it can be pronto converted to cash. usually current assets denotes cash, accounts receivable, inventory, marketable securities, prepaid expenses and different liquid assets which can be liquated indoors 12 months.
On the other side, if the companys debts or obligations that have to pay off within a short period of time, normally in 1 year, atomic number 18 consider as current liabilities. It includes short term debt, account payable, accrued liabilities and other debts.

2. Identify Regina Companys noncurrent assets and its noncurrent liabilities. What characteristic makes an asset or liability noncurrent? (4 marks)
Non-Current Assets:
* Land
* Buildings
* Accumulated derogation (it is a contra asset, usually deducted from long term assets such as buildings, machineries etc.



)
Non-Current Liabilities:
* Mortgage Payable
* Bond Payable

Equity:
* Common Share
* Retain Earning
* Dividend declared (Dividend declared is reported in the statement of changes in stockholders equity. Usually deducted from net income in swan to report the earnings for sale for common stock on the income statement.)

If the assets cannot be liquid within a short period of time, usually takes more than a year or more to liquid it into cash are consider as non-current assets. Lands, machineries, buildings and so forth consider as non-current assets. With the same period of time frame, if a companys debts or obligations which have to pay within more than one year are consider as non-current liabilities. Mortgage payable, attach payable, long term notes and so on can be a good...If you want to get a full essay, order it on our website: Orderessay



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