1. What is a liability? What is it a result of? 2. on page 12-10 know what...
Question:
1. What is a liability? What is it a result of?
2. on page 12-10 know what conditions must be met before a short-term obligation may be properly excluded from the current liability classification.
3. Bond discount should be presented in the financial statements of the issuer as a ______________ Liability.
4. The market price of a bond issued at a discount is the present value of what two things?
Know how to calculate or determine it.
5. If a bond issue sells for more than its face value, the market rate of interest is less or more than the stated rate?
6. What does the issuance price of a bond depend on?
7. What are callable bonds?
8. The net amount of a bond liability that appears on the balance sheet is the face value of the bond plus the related __________________________ or minus the related __________________.
9. How do you calculate the interest expense when using the effective-interest amortization method?
10. How does accrued interest on bonds that are sold between interest dates affect the amount a buyer pays for the bonds?
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso