an approach to control uncertainties and potential danger by assessing what those are, then developing strategies and tactics to reduce them, is known as
In accounting, unearned revenue are the revenues from products and/or services that are yet to be delivered to its customers or clients. Since the business haven't delivered the products or services yet, it is classified as liability as you still owe your customers/clients something.
To know more about liabilities, just continue on reading below.Liabilities
In accounting, liabilities are the resources that a company owes to another business or people.Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable
Current portion of long-term debt (CPLTD) refers to the section of a company's balance sheet that records the total amount of long-term debt that must be paid within the current year.
The correct answer among the listed choices is letter a. Accounts Receivable normally falls under the category of current assets since these are accounts expected to be collected by the company from its customers or clients.ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:Current AssetsNon-current Assets1. Current Assets
-these are assets that can be readily convertible to cash in a normal operating cycle of a business. Normal operating cycle is within 1 year.Some Examples of Current AssetsCash and cash equivalentsAccounts ExpensesMarketable Securities/ Short-term Investments2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwill
All fixed assets and intangible assets fall under the category of non-current assets.
Further related topics about assets and liabilities
What is the opposite of assets
For related topics about fundamental accounting equation
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