What is meant by Other Current Asset or Other Current Liability?

Expert Solution

Other Current Assets and Other Current Liabilities are those Current Assets or Current Liability that are too insignificant to be classified separately. Hence, they all are grouped together under the heading ‘Other Current Assets’ or “Other Current Liability” as the case may be.
Current Assets are assets that can be liquated in the short amount of time, Examples of Current Assets are Cash, Accounts receivables, Inventory, etc. There are instances when there are items of ‘current asset’ nature but their amount or nature is so small or insignificant that they all grouped together under common general heading of “Other Current Assets”.
As with the case of Current Assets, Current Liabilities are obligations to be paid off in coming period. Example Include Accounts payable, Interest payable. Any insignificant nature or amount of any kind of liability is grouped together under the heading “Other current liabilities” that do not require separate disclosures on the Balance Sheet.

ekkarill92 answered 1 year ago

5. What is the difference between a current asset and a current liability? Give three examples...

5. What is the difference between a current asset and a current liability? Give three examples of each.

The changes in the current asset and liability accounts for the year are as follows: Depreciation...

The changes in the current asset and liability accounts for the year are as follows: Depreciation expense $48,500 Gain on disposal of equipment 26,900 Net income 577,400 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,190 Inventory (4,280) Prepaid insurance (2,020) Accounts payable (7,000) Income taxes payable 1,390 Dividends payable 2,480 Required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows <javascript:void(0)>, using...

The following table contains current asset and current liability balances for Deere and Company(DE): a. Measure...

The following table contains current asset and current liability balances for Deere and Company(DE): a. Measure the liquidity of Deere & Co. for each year using the company's net working capital and current ratio. b. Is the trend in Deere's liquidity improving over this period? ($ thousands) 2013 2012 2011 Current assets Cash and cash equivalents 2,181,000 2,177,600 1,624,900 Short-term investments 0 1,626,900 0 Net receivables 3,979,600 3,753,300 3,593,600 Inventory 3,007,800 2,259,400 1,846,100 Total current assets 9,168,400 9,817,200...

Use the following current asset and current liability section of Company X’s balance sheets at January...

Use the following current asset and current liability section of Company X’s balance sheets at January 31, 2015 and 2014 (in millions): January 31, 2015 January 31, 2014 Current Assets Cash $5 $2 Accounts Receivable 3 6 Inventories 6 10 Total current assets $14 $18 Current Liabilities Note Payable $3 $3 Accounts Payable 4 1 Other accrued liabilities 2 2 Total current liabilities $9 $6 Calculate the working capital and current ratio at each balance sheet date. Round your current...

What is an asset? What is a liability? What is the difference between them? Can an...

What is an asset? What is a liability? What is the difference between them? Can an organization operate without current liabilities? Explain your answer.

what is permanent current asset

One of the chief advantages of a corporate structure for organizing and operating a business is the concept of “limited liability.” What is meant by “limited liability?”

ESSAY QUESTIONOne of the chief advantages of a corporate structure for organizing and operating a business is the concept of “limited liability.” What is meant by “limited liability?” What is the corporate veil and how does it protect the shareholders? What is meant by “piercing the corporate veil,” and under what circumstances can the veil be pierced?

What kind of accounts are the following (asset, liability, SE, revenue, expense) and what are their...

What kind of accounts are the following (asset, liability, SE, revenue, expense) and what are their normal balances. Also which specific type of assets, liabilities, or expenses do these fall under on the financial statements?

(a) Globalisation has meant that countries are increasingly dependent on each other. The current coronavirus pandemic...

(a) Globalisation has meant that countries are increasingly dependent on each other. The current coronavirus pandemic has had a significant immediate impact on all economies. Discuss the potential trade effects and channels through which the pandemic can affect a developing economy such as South Africa. (b) Evaluate the validity of the statement below: If Ghana is better at producing commodity X and commodity Y than Kenya, then Ghana is better off not trading with Kenya. NB: Your evaluation of the...

1.Unearned Revenues are classified as a(n) * Revenue Expense Current liability Current asset 2.Beng Company has 30,000...

1.Unearned Revenues are classified as a(n) * Revenue Expense Current liability Current asset 2.Beng Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% noncumulative preferred stock outstanding. The company did not pay the preferred dividends in 2017, 2018 and 2019. On December 1, 2020, the company’s board of directors declared that $150,000 will be paid as dividend on January 17, 2021. What amount of dividends must the company...

Question