If interest-bearing obligations are issued between interest payment dates, the accrued interest sold
Q: Describe the accounting for refund liabilities.
A: Liabilities: The liabilities are the amount of money which a business has to pay to the outside…
Q: Define Short-Term Notes Payable.
A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…
Q: The interest that is charged on the principal and the interest from previous years is called
A: Interest on Interest is a term not used in simple interest. In simple interest, interest is only…
Q: how are the origination fees borne by the borrower accounted for in relation to the initial…
A: External financing is the outsourcing of funds and refers to investment or financing provided by…
Q: Effective interest amortization method uses which of the following rates to determine interest…
A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…
Q: What is done to record properly a transaction involvingthe issuance of a non-interest-bearing…
A: Bond: A bond is a debt instrument, which is repaid along with a specific rate of interest on…
Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…
A: Liabilities that are recorded in the balance sheet are of two types they are - Current liabilities.…
Q: Which of the following would be considered a long-term liability? a. interest payable b.…
A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle…
Q: what's the difference between retirement of bond and repayment to their bond holder( assume the…
A: The answer for the theory question on difference between retirement of bond and repayment of bond…
Q: Interest expense
A: Interest expense paid on a loan which has prescribed is deductible from gross income of the payor…
Q: Under what conditions should a short-term obligation beexcluded from current liabilities?
A: Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be…
Q: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: Perpetual debt instruments a. Are compound financial instruments b. Are derivative financial…
A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…
Q: Determine whether the following statement is true or false, and explain why. A loan is amortized if…
A: Borrowing by an individual or a corporation is the method through which the individual and the…
Q: An installment note is a liability requiring a series of payments to the lender. True or False True…
A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…
Q: What is defined as the interest on a load or principal that is based only on the original amount of…
A: The right answer is option (D) simple interest
Q: The discount allowed to a debtor for early payment is
A: Debtors :- Debtors are the person to whom goods and services are sold on credit.
Q: the interest earned on both the initial principal and the interest reinvested from prior periods is…
A: Compound interest is where interest is calculated on both initial principal and the amount of…
Q: Interest payable is shown on the Oincome statement as an operating exp Obalance sheet as a long-term…
A: Interest payable is a liability account, shown on a company's balance sheet, which represents the…
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: Explain the accounting for long-term notes payable.
A: Notes payable: Notes payable is a written promise to make payment for specific sum at a certain…
Q: Rebate on bills discounted is A liability Actual income Income received in advance An accrued income
A: Statement of financial position or balance sheet is one of a financial statement which helps…
Q: The contractual interest rate is alway state as a
A: Contractual Interest Rate Contractual interest rate refer as the rate which helps to determine the…
Q: Computation and Calculation on how they get - Interest Received - Interest Income - Discount…
A: Bond Amortization - It is a principal paid regularly, along with its interest expenses over the life…
Q: Define the term the effective interest rate covering the payment period?
A: Interest rates can be of two types- Simple interest rate- This is the interest rate stated in the…
Q: How do we record the interest payment (provide examples for both premium and discount amortization),…
A: Bonds are a form of debt or loan taken by the company, on which regular interest payments needs to…
Q: How is the interest earned on the principal amount calculated at the end of each interest period?
A: The interest calculation will be different based on the mode of interest. The amount of interest can…
Q: Describe the Valuation of Installment Notes.
A: Installment notes can be defined as a promissory note for the payment of principal and interest…
Q: Face value of a note payable plus interest is called maturity value. face value. Oproceeds.
A: Introduction: Notes payable: Notes payable is a debt instrument. Notes Issued for cash borrowing,…
Q: How does an installment note differ from a note for which the principal is paid as a single amount…
A:
Q: Under what circumstances would an accrual
A: Interest on promissory notes: Interest on the promissory note is a return to the person lending the…
Q: What are current and noncurrent accounts among the following: - Deposit Liabilities - Bills…
A: Current liabilities are those Liabilities which are to be repaid within one year.. Any Liabilities…
Q: what of the following is the correct calculation for interest cover : a- total debt / interest…
A: Interest coverage ratio is used to find out the ability of a company to pay interest on its debts…
Q: W TO Find the refund fraction for the interest refund.
A: Some time the loans are paid before the day of expiration of loan than we need to find out the…
Q: Determine the effective interest rate to the borrower.
A: The effective interest rate to the borrower would be calculated using the nominal rate. The…
Q: What does the disclosure note for debt includes?
A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…
Q: In the amortization of loans, interest must be paid at the beginning of each period calculated on…
A: Loans are amortized or paid off by way of scheduled and periodic regular payments. The payment…
Q: How is the retirement of bonds recorded?
A: Retirement of bonds can be at maturity date or before maturity date. Accounting for bonds retired at…
Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…
A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…
Q: The expense for warranty costs is recorded in the period ________
A: The Answer
Q: Which company indicates the strongest ability to pay interest expense as it comes due?
A: Times interest earned: the times interest earned is a ratio analysis done by the company to find the…
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- Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization c. Discount on Notes Payable d. Notes Payable
- Which of the following would be considered a long-term liability? a. interest payable b. mortgages payable c. accounts payable d. salaries payableWhich of the following is most likely to be regarded as an estimated liability that is subject to provision? a. Deferred revenues b. Current portion of a long-term debt c. Payroll liabilities d. Vacation pay liabilityWhich of the following is classified as nonmonetary? a. Warranty liability b. Accrued expense c. Unamortized discount on bonds payable d. Refundable deposit
- The current portion of long-term debt should a.be reclassified as a current liability b.be paid immediately c.not be separated from the long-term portion of debt d.be classified as a long-term liabilityThe adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account and deduct the provision from debtors O b. Debit profit and loss account and deduct the provision from debtors Oc. Credit profit and loss account and add the provision to debtors Od. Debit profit and loss account and add the provision to debtorsA present obligation that is probable and for which the amount can be reliably estimated should a.Not be accrued but disclosed b. Be accrued by debiting an expense and crediting retained earnings c. Be accrued by debiting an expense and crediting a liability d. Be accrued by debiting retained earnings and crediting a liability
- 17-Which of the following is a contra-liability account? a. Accumulated Amortization b. Taxes Payable c. Discount on Notes Payable d. Notes Payable8.-If in each interval of time agreed upon in an obligation, interest is added to the principal, forming an amount on which interest will be calculated in the following interval or period of time, and so on, it is said that interest is capitalized and that the financial operation is compound interest. true or false?TRUE OR FALSE? The effect of a lender agreeing to give the borrowing entity a grace period after the reporting period will make a liability current.