1. Explain the importance of the company having long-term debt on its balance sheet.
   1. Explain the characteristics of notes payable and bonds payable.
   2. Explain how long-term debt impacts the financial statements?
2. Explain the alternative accounting methods for situations relating to long-term liabilities and equity.
   1. Why would a bond sell at a different price than the face amount?
   2. What are the two methods of amortizing premium and discount?
3. Explain the importance of the company having equity on its balance sheet.
   1. How do companies obtain common stock?
   2. Describe the purpose and structure of additional paid-in capital.
   3. How do dividends paid or dividends payable impact the equity and income statement?
4. Explain the importance of cash flow in the overall financial health of the organization.
5. Explain how cash flow data connects to the income statement and balance sheet components.
6. Explain how cash flow data connects to the income statement and balance sheet components.

Answer rating: 100% (QA)

1 Importance of LongTerm Debt on Balance Sheet Longterm debt provides a company with the necessary capital to finance its operations investments and expansion initiatives over an extended period It of... View the full answer