ACC 291 Week 3 Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities

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ACC 291 Week 3 Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities
ACC 291 Week 3 Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities
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ACC 291 Week 3 Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities

Consider the following as you read:

Reflecting back on the accounting equation, assets = liabilities + plus stockholders equity, one can conclude that businesses acquire plant assets and fund major projects by investing their own capital, borrowing funds from a financial institution, or acquiring money from investors.

As you learn to report and evaluate liabilities consider the following:

  1. What factors should management consider in determining if borrowing funds is a viable solution?

  2. In acquiring funds to finance major projects, how should management choose from among the alternatives?