Reference no: EM13852385
Current Ratio Assignment:
Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50.
Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 on December 15. Rita Grant, owner of the business, is considering what might happen if she reports a current ratio of 1.40 to the bank. One course of action for Grant is to record in December $10,000 of revenue that the business will earn in January of next year. The contract for this job has been signed.
Requirements
1. Journalize the revenue transaction, and indicate how recording this revenue in December would affect the current ratio.
2. Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation, and give the reasons underlying your conclusion.
Instructions: Your initial response should be no less than 250 words with at least one scholarly journal reference (dictionary-type websites are excluded). In-text citations and references must be in APA format. Refer to the Forum Grading Rubric below for additional guidelines.
Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library. Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference. The purpose is to bring in new information and how does it apply to our topic from a real-world perspective, instead of extending on definitions that are found in the book.
More information what a credible source consists of can be found here: https://writingcommons.org/evidence/supporting-sources/630-what-might-be-a-more-credible-reliable-source.
|
Survey on modern embedded os including ios and android
: Survey modern embedded OS including iOS, Android, wearable OS and others. Investigate and compare their architectures, implementations, strengths, weakness, and security properties.
|
|
Calculate the growth rate of the gdp deflator
: Calculate the growth rate of the GDP deflator
|
|
Description of the current database software
: Describe the Oracle Software file structure you wish to use. You may use OFA, or not. But identify where all the files (dbf, ctl, ora, etc.) will go on the servers. If you don't use OFA, then support your decisions. Define the tablespaces and prov..
|
|
What are the formula in the operation of fraction
: What are the formula in the operation of fraction and how will i apply the operation of fraction on word problems
|
|
How recording this revenue in december would affect ratio
: Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation, and give the reasons underlying your conclusion.
|
|
What is not a characteristic of a random data series?
: What is not a characteristic of a random data series?
|
|
What does it mean to remove process barriers
: What does it mean to "remove process barriers" and why is it critical to enterprise planners? You may need more than the textbook to do this activity
|
|
How might p and g have segmented the market
: How might P&G have segmented the market? Identify segmentation variable(s). Identify the specific targeting strategy utilized to launch/introduce the product. Discuss.
|
|
Information in the budget documents
: Out of the information in the budget documents given above, state which information is NOT relevant to deciding the product mix to maximise the contribution to company profits.
|