Answer to Question #244251 in Accounting for samantha

Question

Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.

1. Which of the following attributes will classify an item which can be seen as a liability in

the Statement of Financial Position?

a.Expenses paid before the actual utilization

B. Expenses already utilized and paid for.

c.Expenses already utilized but have not yet paid for

D. All expenses cannot be classified as a liability component

4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the reporting period will jump to the date of December 31, 2023, when is the threshold of

proving that the asset or liability is current? (Pick between August 30, 2023, and December 31, 2023, only Explain your position.

Answer 1

1.c. Expenses already utilized but have not yet paid for

4. The threshold of proving that the asset or liability is current is 30th August 2023, since August is part of normal operating cycle and it is within one financial year