Post a New Question

Principle of Accounting

posted by .

t is stand accounting procedures, or GAAP, to make an adjusting 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. You are the bookkeeper for Biker�s Business. Biker�s Business has a bank loan that requires a current ratio of 1.5 times. The owner has asked that you do not make the adjusting entry to take the current portion from the long-term liabilities. You know if you make the adjusting entry Biker�s Business� loan will need to be repaid immediately (or the loan called). What should you do?

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question