Concept explainers
Least liquid assets: Least liquid assets are noncurrent assets which are not likely to be converted into cash and cash equivalent within one accounting period. These are long term assets having a operational life of more than one accounting period.
Most liquid assets: Most liquid assets are those current assets , conversion of which in to cash and cash equivalents are estimated to be in a year.
Liabilities furthest from maturity: Liabilities furthest from maturity are the long term liabilities which are not likely to be discharged within a time frame of one year. It means they are not due to be matured in the following accounting period.
Liabilities nearest to maturity: Liabilities nearest to maturity are short term liabilities which are due to be matured within a year.
To identify: a. Proper order of liquid assets under of IFRS.
b. Proper order of liabilities on basis of maturity period under IFRS.
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FINANCIAL ACCT.FUND.(LOOSELEAF)
- OCT 31 Flower Shop makes a sale, on account for $1.200. NOV 15 Flower Shop delivers the flowers ordered above DEC 01 Flower Shop sends the above customer a bill for $1.200 DECOS Flower Shop receives the above customers check on DEC 10 Assuming that Flower Shop follows GAAP on which date is the $1.200 "recognized as a revenue? OCT 31 NOV 15 DEC 01 Ether date in DEC 11st or 5th is acceptablearrow_forwardes C raw ill On January 1, Wei Company begins the accounting period with a $36,000 credit balance in Allowance for Doubtful Accounts. a. On February 1, the company determined that $8,000 in customer accounts was uncollectible; specifically, $1,500 for Oakley Company and $6,500 for Brookes Company Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $1,500 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received. View transaction list Journal entry worksheet { + [ > prt sc } ] delete backspace ^4 40 home num lock 7 end 1 4arrow_forwardSALES RETURNS AND ALLOWANCES ADJUSTMENT At the end of year 1, MCs estimates that 2,400 of the current years sales will be returned in year 2. Prepare the adjusting entry at the end of year 1 to record the estimated sales returns and allowances and customer refunds payable for this 2,400. Use accounts as illustrated in the chapter.arrow_forward
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