Accounting Questions
Not what you're looking for?
1. Sir Ariel, a star college basketball player, received a contract from the Western Timberlines to play professional basketball. The contract calls for a salary of $300,000 a year for four years, dependent on his making the team in each of those years. Should his contract be considered a liability and recorded on the books of the basketball team?
2. Is increasing payables turnover good or bad for a company? Why or why not?
3. Do adjusting entries involving estimated liabilities and accruals ever affect cash flows?
4. When would a commitment be recognized in the accounting records?
Purchase this Solution
Solution Summary
The solution explains some theory questions in accounting
Solution Preview
1. A liability is recorded only when it is determinable. A liability arises when the benefits are taken and the payment is yet to be made. In this case the contract is signed and the benefits from the player are yet to be taken and so is not a liability to be recorded. The company may disclose the signing of the contract in the notes to the ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Operations Management
This quiz tests a student's knowledge about Operations Management
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.