Develop a brief answer to each of the following questions:
1. Nate Livio, a star college basketball player, received a contract from the Eastern Blazers to play professional basketball. The contract calls for a salary of $210,000 per year for four years, dependent on his making the team in each of those years. Should this contract be considered a liability and recorded on the books of the basketball team? Why or why not?
2. Is an increasing payables turnover good or bad for a company? Why?
3. Do adjusting entries involving estimated liabilities and accruals ever affect cash flows?
4. When would a commitment be recognized in the accounting records?

  • CreatedSeptember 10, 2014
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