Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Using Your Judgment - Financial Statement Analysis Case: Case 1 - Page 255: b

Answer

First, the details regarding the terms of the credit should be included in the notes that supplement the financial statements. Second, the outstanding amount ( which is equivalent to 4,000,000) should be an accounts payable.

Work Step by Step

First, the details regarding the terms of the credit should be included in the notes that supplement the financial statements. Second, the outstanding amount ( which is equivalent to 4,000,000) should be an accounts payable.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.