Professional Documents
Culture Documents
CASE STUDY
Direction. Read, understand each statement, and answer them using your own words.
Rubrics will be used for marking your output. Your answers will be subjected to
plagiarism. Similarity index should be less than 20%.
1. Long-term liabilities, or non-current liabilities, are liabilities that are due beyond a year
or the normal operation period of the company. The normal operation period is the
amount of time it takes for a company to turn inventory into cash.[2] On a classified
balance sheet, liabilities are separated between current and long-term liabilities to help
users assess the company's financial standing in short-term and long-term periods. Long-
term liabilities give users more information about the long-term prosperity of the
company while current liabilities inform the user of debt that the company owes in the
current period. On a balance sheet, accounts are listed in order of liquidity, so long-term
liabilities come after current liabilities. In addition, the specific long-term liability
accounts are listed on the balance sheet in order of liquidity. Therefore, an account due
within eighteen months would be listed before an account due within twenty-four
months. Examples of long-term liabilities are bonds payable, long-term loans, capital
leases, pension liabilities, post-retirement healthcare liabilities, deferred compensation,
deferred revenues, deferred income taxes, and derivative liabilities.
Bond details include the end date when the principal of the loan is due to be paid to the
bond owner and usually include the terms for variable or fixed interest payments made
by the borrower.
3. The Dog Games R Us Company is in the process of constructing a new building to house
its operations and is considering the purchase of new, state-of-the-art pieces of machinery
that will allow it to make dog games using less plastic. The owner of the business, Mr. I.
M. Shaggy wants to learn all he can about long-term operating assets before committing
the company to this purchase.
Operating assets are acquired to produce income for a business. Long-term operating
assets are classified as tangible or intangible. Tangible assets have physical substance,
and intangible assets are those that cannot be touched or felt. Examples of tangible assets
include property, plant, and equipment and natural resources. A patent is an example of
an intangible asset. A patent granted by a government authority provides an inventor
with the exclusive right to use, produce, or sell his or her invention for a specified period
of time.
RUBRICS
4-5 4-2 0-2
Substantial, specific, and/or Sufficiently developed Limited content with
illustrative content content with adequate inadequate
demonstrating the elaboration or explanation elaboration or
development and explanation.
Prepared by : Reviewed / Checked by: Verified by: Approved by:
Dr. Vinodh Natarajan , PhD
EMAD SADEQ Dr. Mahmood Akbar, PhD Dean
Course coordinator
Program Dep’t Head
Date : 28.02.2022 Date : Date : Date :
Salmabad, Kingdom of Bahrain
College of Administrative & Financial Sciences
2nd Trimester, SY 2021-2022