Our fully updated 2017-18 ACC 291 Week 3 answer guide. All problems requiring calculations are performed in MS Excel, so you can easily learn the formulas and plug in new values.
List of Problems Covered
- Liabilities section of O'Brian's Balance Sheet | BE10-13
- Multiple Choice Practice Answers with Explanations
O'Brian's Balance Sheet
Prepare the liabilities section of O'Brian's Balance Sheet balance sheet using the following information:
The time period for classifying a liability as current is one year or the operating cycle, whichever is
Explanation: Fiscal years will almost always be a full calendar year, but in cases when it is longer, current liabilities will be extended to match the full fiscal year.
Which one of the following is not a typical current liability?
Explanation: Mortgages are usually used on major asset purchase, such as real estate, and last for multiple years.
Buttner Company borrows $8,500 on September 1, 2017, from Harrington State Bank by signing an $88,500, 12%, one-year note. How much is accrued interest at 05 December 31, 2017?
Annual Interest = 88,500 * 0.12 = 10,620
4 Month Interest = 10,620 * (4 / 12) = 3,540
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