Business, 06.03.2020 05:22, KillerSteamcar
The Tony Hawk Skate Park has a 5-year installment loan with monthly payments of $5,000 including interest. Currently, the first twelve monthly payments have been recorded as a current liability. The VP of Finance, tells board members that he plans to classify the current portion of the installment note as long-term. He explains that lenders will be more willing to let the company borrow and will offer lower interest rate if the company reports fewer current liabilities. a. Classifying the first twelve installment payments as a current liability is not required by GAAP.
b. Reporting the current portion of a long-term note as long-term debt is a misrepresentation of the financial position of the company.
c. The ability to borrow at lower interest rates is more important than being ethical.
d. Presenting investors with a strong current ratio is acceptable at any cost.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 20:20, ktenz
Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?
Answers: 1
Business, 22.06.2019 11:00, neash19
Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period
Answers: 3
Business, 23.06.2019 19:50, almighty196
In 1942, 120,000 japanese americans were sent by federal order to internment camps. afterward, all asian americans (regardless of their country of origin and/or u. s. citizenship status) went from being a relatively unnoticed group to being singled out for discrimination. this is known as
Answers: 3
Do you know the correct answer?
The Tony Hawk Skate Park has a 5-year installment loan with monthly payments of $5,000 including int...
Questions in other subjects:
Health, 24.04.2020 22:14
Chemistry, 24.04.2020 22:14
Mathematics, 24.04.2020 22:14
Mathematics, 24.04.2020 22:14
