1. Why do we differentiate current and non-current liabilities?
2. What is depreciation?What judgements must be made when calculating depreciation?
3. The accounting equation which must be satisfied with every transaction isEquity = Assets less Liabilities
4. Do you think thetotal of equity in a company balance sheet would equal to the amount shareholders might expect to receive in total, if all the assets of the entity were sold and all the debts were paid? If not, why not?
5. Explain why contingent liabilities are not recognised in the balance sheet.