Glossary - Chapter 13 - Principlesofaccounting.com
Glossary for Chapter 13: Long-Term Obligations. A theoretically preferable method for amortizing premiums and discounts on bonds; interest expense is a constant percentage of the bonds ever-changing carrying value
Actived: Wednesday May 13, 2020
Bonds Payable - principlesofaccounting.com
Bonds payable result when a borrower splits a large loan into many small units. Each of these units (or bonds) is essentially a note payable. In the past, some bonds were coupon bonds, and those bonds literally had detachable interest coupons that could be stripped off and cashed in on specific dates. One reason for coupon bonds was to ease
B-07.08 Monitoring receivables: Analysis and ratios
vacuum and select one of the coupons to apply against their purchase. The best coupon is a no-money-down, four equal monthly payments coupon. "Magically", every customer will find at least one of these coupons. Virtually all customers will use this coupon in making their final purchases.
Once on the website, customers are constantly confronted with a "video game" where they can use icon-like vacuums to suck up coupons that float on and off their browser windows. At check out, customers are able to clean the contents of their imaginary vacuum and select one of the coupons to apply against their purchase.
Glossary - principlesofaccounting.com
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Notes Payable - principlesofaccounting.com
Long-term notes will be considered in the next chapter. For the moment, focus on the appropriate accounting for a short-term note. A common scenario would involve the borrowing of money in exchange for the issuance of a promissory note payable.
Contingent Liabilities - principlesofaccounting.com
Rules specify that contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. This means that a loss would be recorded (debit) and a liability established (credit) in advance of the settlement. Companies may offer coupons, prizes
Accounting For Bonds Payable - principlesofaccounting.com
A bond payable is a promise to pay a series of payments over time and a fixed amount at maturity. Accounting for bonds payable requires present value computations to determine the current worth of the future payments.