Task 1: Please address the following questions in your discussion:
 Remember to prepare and post your answers before your class every week. This is part of your Inter-teaching Discussion Preparation.
Complete the questions below before attending your  class.  You should note any areas of confusion or difficulty for further discussion during your class.
The questions are derived from Topic Notes therefore discussions should be within that context.

Discussion Questions

1. Why do we differentiate current and non-current assets?
2. What is depreciation?  What judgements must be made when calculating depreciation?
3. The accounting equation which must be satisfied with every transaction is Equity = Assets less Liabilities
   Do you think the  total of equity in a company balance sheet would equal to the amount shareholders might expect to receive in total, if all the assets of the entity were sold and all the debts were paid? If not, why not?
4. Briefly describe contingent liabilities.

Task 2 – Reply to one of your classmates’ posts.

  Question 1:

Noncurrent assets are a company’s long-term investments for which the full value will not be realized within the accounting year. Examples: investments in other companies, intellectual property, and property, plant, and equipment.

 

Question 2:

Depreciation is what happens when a business asset loses value over time. It is also including is allocating the price you originally paid for an expensive asset over the period of time you use that asset.

 

Question 3:

It is known as the shareholders’ equity that represents the net worth of a company, which is the amount of money that would be returned to shareholders if a company’s total assets were liquidated, and all of its debts were repaid.(Equity = Assets-Liabilities)

Question 4:

A contingent liability is a potential liability that may or may not become an actual liability. Whether the contingent liability becomes an actual liability depends on a future event occurring or not occurring.