FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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) Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show they are at their credit card limit of $500 this month. Samantha manages her credit well and ensures that her credit card balance is paid off in full each month before the payment deadline while Samuel cannot manage to pay off the minimum amount required each month. Complete the senterice: For Financial Statement reporting purposes,
a) It does not matter where Samantha or Samuel report the $500 as long as it is shown on one of their Financial Statements.
b) Both Samantha and Samuel would report their $500 on their Balance Sheet as a current liability.
c) Both Samantha and Samuel would report their $500 on their Cash Flow statement as an expense.
d) Samantha would report her $500 on her Cash Flow statement as an expense while Samuel would report his credit card debt of 5500 on his Balance Sheet as a current liability.
e) Samantha would report her $500 on her Balance Sheet as a current liability while Samuel would report his credit card debt of $500 on his Cash Flow statement as an expense.
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