ACC 422 Week 4 DQs
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ACC 422 Week 4 DQs
Discussion Questions
What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassifying a liability as current or long-term?
What is a contingency? Why are contingencies important to users of financial statements? What are the criteria for recording contingencies? Should companies record a liability for threatened litigation? Explain why or why not.
What is a bond? What are some features of a bond? How do you value bonds? What factors can affect that value?
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