Access the glossary at the FASB Codification to answer the following:

What is the definition of current assets?

What is the definition of current liabilities?

A company wants to offset its accounts payables against its cash account and show a cash amount net of accounts payables on its balance sheet. Identify the criteria (found in the FASB Codification) under which a company has the right of set off. Does the company have the right to offset accounts payable against the cash account?

CASE 2: (a) Access the glossary at the FASB Codification to answer the following: 1. What is the definition provided for inventory? (b) What guidance does the Codification provide concerning reporting inventories above cost?

CASE 3: Many companies have potential pollution or environmental-disposal problems-not only for electronic gadgets, but also for lead paint or asbestos they sold. How do we fit these issues into the accounting equation? Are these costs and related liabilities that companies should report?

Yes: As more states impose laws holding companies responsible, and as more courts levy pollution-related fines, it becomes probable that companies will have to pay large amounts in the future.

No: The amounts still are too difficult to estimate. Putting inaccurate estimates on the financial statements reduces their usefulness. Instead, why not charge the costs later, when the actual environmental cleanup or disposal occurs, at which time the company knows the actual cost?

Instructions: Write a paper indicating your position regarding this situation. Provide FASB Codification references for your responses.