What is the rule for classifying a liability as current is


Managerial accounting

Concept review

Part 1

The answers to the following questions can be found in the PowerPoint presentations Accounting Review for Managerial Accounting Students and Concept Review.

1. Define assets. What characterizes an asset as current or long-term?

2. What are the total assets of Shannon Realty on December 31, 20xx as listed in the Balance Sheet?

3. List the current assets of Shannon Realty.

4. List the long-term assets of Shannon Realty.

5. Define liabilities.

Concept Review con't.

6. What are the liabilities of Shannon Realty as of December 31, 20xx as listed in the Balance Sheet?

7. What is the rule for classifying a liability as current?

8. Is accounts payable a current or non-current liability?

9. Why are unearned revenues classified as liabilities?

10. What is the net income of Shannon Realty for the month ended December 31, 20xx on the Income Statement?

11. Define depreciation. Give an example of two assets that would be subject to depreciation.

12. List and define the components of Stockholder's Equity in a corporation.

Concept Review con't.

13. Define dividends.

14. Define stock dividends. How do stock dividends and cash dividends differ?

15. Define treasury stock and explain why a corporation would purchase its own stock.

Attachment:- PPT.rar

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Managerial Accounting: What is the rule for classifying a liability as current is
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