Can the same item be considered a long term asset in one company and a current...
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Can the same item be considered a long term asset in one company and a current asset in another? Is the asset's intended use taken into consideration? For example, can an automobile be classified as a long term asset in one company and a current asset in another? Can you think of more examples? 2. TQ: What is the difference between owner's capital and liabilities as a source of funding company's assets? Which one do you think is better (discuss the pros and cons) 3. TQ: Why is it important to know whether a liability is short term or long term? Can the same item be considered a long term asset in one company and a current asset in another? Is the asset's intended use taken into consideration? For example, can an automobile be classified as a long term asset in one company and a current asset in another? Can you think of more examples? 2. TQ: What is the difference between owner's capital and liabilities as a source of funding company's assets? Which one do you think is better (discuss the pros and cons) 3. TQ: Why is it important to know whether a liability is short term or long term?
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Answer rating: 100% (QA)
1Longterm asset are the asset of a company which are permanent in nature and which are not high liquidity in nature Examples are property plant and Equipment Building Automobiles While current asset i... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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