Fichas
Liabilities
Fichas del conjunto (17)
- 1Current LiabilitiesA/P, N/P Accrued liab., Payroll Liab., Unearned Revenue, Current portion long-term debts
- 2Accounts PayableNo written promises, do not call for interest payment
- 3Notes PayableWritten promise to repay amount owed by particular date and usually calls for payment of interest
- 4Current portion long term debtse.g. mortgage loans
Payable in series pf monthly or quarterly instalments
Current liability: within one year
Long-term: Remainder - 5Accrued liabilitiesarise from recognition of expenses for which payment will be made in future period
- 6Payroll liabilitiesEmployees must pay a number of costs in addition to the wages
- 7Unearned Revenueliability: When customer pays in advance
- 8Maturing obligationsObligations will mature in the current period but that is expected to be refinanced on a long-term basis
- 9Instalments note payablesPurchases of real estate and certain types of equipment often are financed by the issuance of long-term notes that call for a series of instalment payments. Amortisation Table is produced
- 10Bonds PayableLong-term debts securities that subdivide a very large and long-term corporate debt into transferable increments of 1000$ or multiples thereof
- 11Tax advantages of bond financinginterest payments are deductible in determining income subject to corporate income taxes. (to stockholders not deductible)
- 12Accounting for Bonds Payableclosely parallels accounting for N/P
- 13Accounting bond discountPrice below face value. When bonds are issued at discount, the borrower must repay more than the amount originally borrow. Any discount in the issuance price becomes an additional cost of the overall borrowing transaction.
- 14Accounting bond premiumUnderwriter pay a slight premium to the issuer - a price above par
- 15Bond prices after issuanceAfter bonds are issued, their market price vary inversely with changes in market interest rates. -> Interest rate decline - market price of bonds goes up; vice versa
- 16Early retirements bonds payableBonds retired before maturity date (reason: to relieve the issuing corporation of the obligation to make future interest payments
- 17Methods determining creditworthinessInterest Coverage Ratio (shows if the company can cover its interest payments by a wide margin)
Información
- Descripción
- Fichas sobre Liabilities, creado por Catharina Ann el 11/03/2016.
- Creado por
- Catharina Ann
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