This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Vestige, Inc needs another loan from a bank in order to pay its bills. In order to improve its ... (Read 122 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
on: Jul 5, 2018
Vestige, Inc needs another loan from a bank in order to pay its bills. In order to improve its chances of getting another loan, it reports its ten-month note payable as a long-term liability.
 
  Discuss the treatment of this note payable including the financial statement presentation and the effect on the current ratio. Discuss the ethical issue with Vestige's treatment of this note payable.
  What will be an ideal response?

Question 2

The payroll register is a key source of information for computing employer payroll taxes.
 a. True
   b. False
   Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

millet

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jul 5, 2018
Answer to Question 1

Vestige, Inc. is unethical in misrepresenting its financial position. The note is a current liability, not a long-term liability, because it is due within one year. Since its current liabilities are understated, the current ratio will look more favorable than it should. A potential creditor will be misled and may decide to lend the money only to find out later that the company does not have the ability to pay back its loans when due.

Answer to Question 2

True


kshipps

  • Hero Member
  • *****
  • Posts: 571
Reply #2 on: Jul 5, 2018
Thank you :)


millet

  • Sr. Member
  • ****
  • Posts: 354
Reply #3 on: Jul 5, 2018
Happy to help you


« previous next »
 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
An example of an EHR screen used to order a laboratory test. An example of an EHR screen used to order a laboratory test.
If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination. If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination.
Lymphatic massage techniques improve the circulation of lymph fluid. Lymphatic massage techniques improve the circulation of lymph fluid.
Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ... Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ...
Rola Inc. borrowed $42 000.00 at 7% compounded semi-annually. The loan is repaid by payments of ... Rola Inc. borrowed $42 000.00 at 7% compounded semi-annually. The loan is repaid by payments of ...
Video: Graded potentials - electrical characteristics and types

For a complete list of videos, visit our video library