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Current Liability, Equity Accounts, Bonds, and Corporations

1. What is a current liability? What is a non-current liability? What is the difference between the two types of liabilities? In which financial statement would you find these liabilities?

2. What are the types of equity accounts? What is the role of equity accounts in raising capital?

3. What are the several different types of bonds available to us?

4. What are the characteristics of a corporation?

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(1) What is a current liability? What is a non-current liability? What is the difference between the two types of liabilities? In which financial statement would you find these liabilities?

Current liability is a debt or obligation that is due within one year. Non-current liabilities include all other liabilities and usually classified under long-term debt (vs. short-term debt or current liabilities). The difference here is simply the due date (one year vs. longer than one year). Both types of liabilities are found under the liabilities section of the balance sheet.

(2) What are the types of equity accounts? What is the role of equity accounts in ...

Solution Summary

This response explains concepts such as current and non-current liability, equity accounts and raising capital, bond types, and corporation characteristics.

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