591 wk5 db1 res1

Respond to… 

Any company or business must have working capital in order to maintain operations. In order to determine a working capital, current assets are subtracted from current liabilities. This indicates the financial strength of a company as it outlines whether or not a company has enough cash or assets to pay for liabilities. Liabilities are defined as the legal obligations or financial debts of a company that develop throughout course of business operations (Kimmel, Weygandt, & Kieso, 2019). Some examples of liabilities include short/long term borrowing from individuals, banks, or entities. Additionally, there are various types of liabilities such as current liabilities and long-term liabilities. Current liabilities are payable within one operating cycle/one year and are written on the balance sheet in the order that payments are due. A few examples of current liabilities are wages and salaries, notes payable, accounts payable (revenue owed to vendors), and deferred revenues (goods that were paid for but not yet delivered) (Kimmel, Weygandt, & Kieso, 2019). In contrast, long-term liabilities are payable beyond one operating cycle/one year and are written in separate formal documents that are inclusive of important details of transactions (e.g. interest, principal amount, and due date). Bonds payable, mortgages, leases, pension obligations, bank notes, and bank loans are all examples of long-term liabilities.
Reference
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2019). Financial accounting: Tools for business decision making (8th ed.). Retrieved from https://www.vitalsource.com

Respond to… 

Liabilities are creditors’ claims on total assets and as existing debt per Kimmel (2011). Liabilities are debt a company settles by transferring assets or services. In determining the differences between current liabilities and long term liabilities, future maturity dates are very important. A debt that is expected to be paid by existing current assets or creation of other current liabilities within one year or operating cycle is a current liability. Long term liabilities are debts that will not meet the two proceeding criteria (Kimmel 2011).
Major types of current liabilities are: account payable, accounts payable, accrued liabilities, and unearned revenues. Accrued liabilities can be things such as taxes, salaries, wages, and interest. Many notes payable have future payoff date beyond a year cycle if operation does not make payable long term liabilities. Taking a very close look went in a company would be ideal to notice the differences. I would love to be advice about future decision concerning investments. A company with less long term liabilities is ideal for me, and ability to save after current liabilities are paid off.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.

Money-back guarantee

Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.

Read more

Zero-plagiarism guarantee

All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.

Read more

Free-revision policy

We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.

Read more

Privacy policy

All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.

Read more

Fair-cooperation guarantee

Ordering and sending money to us is an indication that you are purchasing our products and services. To have business talks laid out in the official language, you can check on our terms and conditions and get more information about this.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 20% with the discount code: LEMONADEPlace Order