Explain how to account for the impairment of held-to-maturity debt security.

Q: How do IFRS and U.S. GAAP differ with respect to the classification of debt that is expected to be…

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Q: Briefly explain off-balance-sheet assets and off-balance-sheet liabilities with an appropriate…

A: Off-balance-sheet items seem to be those items that do not show up on a company's balance sheet.…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: Is the relevant cost of debt, when calculating the WACC, theinterest rate on already outstanding…

A: Answer: For some decisions the embedded costs are significant but not for others. For example, when…

Q: How is periodic interest determined for outstanding liabilities? For outstanding receivables? How…

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Q: Explain Current maturities of long-term debt.

A: Current maturities of long-term debt (CMLTD): It refers to such short-term obligations of the…

Q: Explain restructuring (of debt terms)

A: Debt restructuring It is a system that organizations use to get away from the risk of default on…

Q: Explain the characteristics of  liabilities.

A: Liabilities:   It refers to the debts owed by the business for outside entities as a result of…

Q: what is the required method of amortizing discount and premium on bonds payable? Explain the…

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Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: What is the significance of a debt coverage ratio?

A: Debt service coverage ratio (DSCR) is one of the numerous financial proportions that moneylenders…

Q: what are the sources of debt financing?

A: debt financing: it the amount of money borrowed by he firm to run the business.

Q: Identify the underlying characteristics of debt instruments and describe the basic approach to…

A: Debt:   It refers to the money that is owed or due to outsiders by the organization.

Q: when is stated interest rate of a debt instrument presumed to be fair?

A: Financial instruments are the contract those are traded in the market. the primary financial…

Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: Which of the following is stated correctly? a.    Current liabilities follow non-current liabilities…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: describe the fi nancial statement presentation of and disclosures relating to debt

A: A single line component of the cumulative amount of a long-term firm's liability due after one year…

Q: Explain a debt instrument against the following criteria: Pricing conventions/Rules Seniority

A: The debt instruments refer to the financial instruments, which provide the debt funds to the…

Q: Is any special accounting treatment required for the assigning of accounts receivable in general as…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: describe the role of debt covenants in protecting creditors;

A: Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: A debt amortization schedule prepared for each debt and equity is considered a good control. O True…

A: Debt Amortization Schedule: A loan amortisation schedule is a comprehensive table of periodic loan…

Q: Accounting The procedure that best reveals the existence of contingent debts is

A: Contingent liability is a liability that may or may happen on a future date that is based on an…

Q: Describe When Short-Term Obligations of liabilities Are Expected to Be Refinanced.

A: Short-term obligations are the current liabilities of an enterprise that is required to be fulfilled…

Q: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: What is the structure of Collateralized debt obligation. Please explain in details

A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…

Q: What is the effective interest rate of a bond or other debt instrument measured at amortized cost?…

A: The effective rate is increased times the bond's value at the beginning of the accounting amount to…

Q: What types of short-term credit are classified as accrued liabilities?

A: An accrued liability means the expense of the business incurred during a specific period but has yet…

Q: Describe the terms of  Contingent Liabilities with examples.

A: Contingent liability: This is an uncertain obligation that might be incurred on a future date as a…

Q: Define embedded rate (for debt)

A: An embedded option is the component of financial security the gives the issuer of the debt option or…

Q: A long-term liability should be reported as a current liability in a classified balance sheet if the…

A: Balance sheet: The balance sheet shows the financial position of the company by recording all the…

Q: Which of the following items would most likely be classifi ed as a fi nancing activity? A . Issuance…

A: Financing activities are a major part of any entity. These activities are correlated to the issuance…

Q: Explain the nature of long term debt.

A: Nature of long-term debt: Long-term debts are the obligations of the company that are required to…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: Describe Debt Investments to Be Held to Maturity.

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Q: Explain Early Extinguishment of Debt.

A: Definition:   Liability: The claims creditors have over assets or resources of a company are…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: What are out of period debts? Explain?

A: Out of Period debts: It is also known as time barred debts.

Q: Describe the accounting for the extinguishment of debt.

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Q: Explain in words the difference between total debt and total liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Why A debt security pays a fixed stream of income or a stream of income that is determined according…

A: Debt instruments It is the fixed-income securities that generally make payment of fixed interest…