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BACC011 Quiz 2- Requires Respondus LockDown Browser
Short answer
Here are some of the closing balances for a business. Calculate the current liabilities. Accounts payable 35,600 Accounts receivable 10,400 Bank loan 1,200,000 Cash 18,028 Cost of sales 340,000 Equipment 38,752 Inventory 100,800 Prepaid expenses 6,405 Property and land 1,500,550 Salary expense 115,900 Salary payable 9,526 Sales revenue 546,780 Unearned revenue 2,384
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Step-by-Step Analysis
To determine current liabilities, we first identify items that are expected to be settled within one year or the normal operating cycle. Next, we sum those amounts.
- Accounts payable (35,600): This represents amounts owed to suppliers that are typically settled in the short term, so it is a current liability.
- Accounts receivable (10,400): This is an asset, not a li......Login to view full explanationLog in for full answers
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