ACC 291T Week 5 Discussion Answer
Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students.
Respond to the following in a minimum of 175 words (replies also need to be a minimum of 175 words each):
Respond to the following:
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal entry to remove the current year’s principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities.
Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting entry, the company’s loan will need to be repaid immediately (or the loan called). What should you do?
Reply to at least 2 of your classmates (replies also need to be a minimum of 175 words each). Be constructive and professional in your responses. ACC 291T Week 5 Discussion Answer
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