What is a current liability?

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What is a current liability?  From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities?  Based on your current experience as well as any additional research you may have done provide two examples of situations where businesses collect monies from customers and employees and reports these amounts as a current liability.

 

DQ 2

 

A client comes to you thinking about starting a consulting business.  Your client is specifically interested in what type of entity should be created for this new business.  Based on your readings or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation.  Based on these advantages and disadvantages provide a clear recommendation to your client. 

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