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Cost Management Solution Ch13

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CHAPTER 13

NON-FINANCIAL AND Current liabilitieS

SOLUTIONS TO EXERCISES

EXERCISE 13-1 (10-15 minutes)

(a) Classifications on balance sheet prepared under ASPE:
|1. |Current liability; financial liability. |
|2. |Current asset. |
|3. |Current liability or long-term liability depending on term of warranty; not a financial liability. |
|4. |Current liability; financial liability. A company would have an obligation to pay cash to the bank for any overdraft and this |
| |would result from the contractual agreement with the bank. |
|5. |Current liability; not a financial liability if this refers to income tax withholdings, CPP and EI. This is a financial liability |
| |if it refers to other withholdings of a contractual nature with employees (union dues, for example). |
|6. |Current liability; financial liability. |
|7. |Current or noncurrent liability depending upon the time involved; not a financial liability (if deposit will be returned then it |
| |would be a financial liability). |
|8. |Current liability; not a financial liability. |
|9. |Current liability; not a financial liability.

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