Homework2 part c | Accounting homework help

 

TOPIC D – posted Saturday

(1) Check out this format of the Balance Sheet using international accounting standards. What differences in classifications, from US rules, do you notice? Looks like non-current assets are listed first. Why do you think that is?

ACCT550BPBalanceSheet.png

(2) One of the best solvency ratio is “times-interest-earned”. Calculate the ratio and interpret the results in these income statements.

ACCT212income-statement-img2.pngACCT212incomestatement3.jpg

(3) Why do you think accounts receivable can be sold to a third party (called factoring)? What is management trying to do when they sell the receivables at the time of sale? Can cash discounts speed-up the cash conversion cycle? How so?

TOPIC C – posted Thursday

Journal entries are the way that accountants record business transactions. Using the debit/credit rules, prepare journal entries for these transactions:

ACCT212DebitCreditRules (1).pngPicture1.jpg

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