The conversion of the company’s short-term debt into a long-term note payable would decrease both working capital and the current ratio.

Q: Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization…

A: Contra liability account is one that is debited for the explicit purpose of offsetting a credit to…

Q: Which of the following is false? A) Interest expense reported in the income statement equals the…

A: Solution Concept Interest expense using effective interest method = market rate of interest…

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: 29. Which of the following statements are true? Statement I. An interest rate reflects the rate of…

A: Interest rate is one of the most important concepts which impacts the financial market in the…

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: Explain why writing off a bad debt against the Allowance for Doubtful Accounts does not diminish a…

A: The estimated realizable value of a company's accounts receivables is unaffected by writing down a…

Q: Which one of the following statements does not describe liabilities correctly? Select one: O a. Most…

A: Liabilities are described as obligations which are required to be paid by the business. These are…

Q: Some liability and net worth items increase spontaneously with increases insales. Put a check (✓) by…

A: Accounts payable is the amount owed by a company to its creditors for the goods and services…

Q: Which of the following is false about the discount on short-term notes payable? * O The Discount on…

A: Notes payable is a written contract which specified a certain payment at a specified data along with…

Q: f a problem is silent to the terms of a note payable, is it considered as a long-term or a…

A:

Q: Which is a valid statement regarding recognition of liabilities?        a. A non-interest bearing…

A: The non-interest bearing note is the note on which no interest rate is mentioned. But interest has…

Q: Which of the following would be an entry in the statement of changes in equity? Select one: a.…

A: Statement of changes in equity - It is the statement from the balance sheet. It is also called…

Q: Which of the following statements is TRUE? a. When the stated rate of interest exceeds the…

A: The stated rate is not considered the compounding factor of the time value of money. The effective…

Q: Notes receivable should be stated at amortized cost which is equivalent to its present value which…

A: The Amortised cost is the present value of cash inflows from note receivable using an effective…

Q: Q1: ____ interest is paid not only on the principal but also on any interest earned but not…

A: There are two types of interest simple and compound

Q: hort-term notes payable: O Can replace an account payable O Can be issued in return for money…

A: Short term notes payable is a current liability. It is an obligation to pay a specified sum plus…

Q: When unspecified receivables are used to secure for a loan, which accounting treatment is required?…

A: Accounts receivables can be used to secure loan.Borrower takes loan on security of his receivables…

Q: As a loan is paid off, the   monthly payment increases debt and interest portions do not change each…

A: Interest expenses on loan is calculated on the closing balance of the loan  account on a particular…

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: Modes of extinguishing obligations when creditor abandons his right to collect.

A: You have asked four different multiple choice question and as our guidelines are concerned we…

Q: Which statement is incorrect? a. PFRS mandates the use of projected unit credit method of…

A: IAS 19 (International Accounting Standard 19)- Employee Benefit:- These standards included employee…

Q: Accrual accounting requires estimates of future outcomes. For example, the reserve for bad debts is…

A: Financial Statements These are a company's financial activities and position in a nutshell. The data…

Q: ounting for notes with unrealistic interest rates, any difference between the amount of interest…

A: Notes payable refers to the type of long-term liabilities which refers to the sum total f money a…

Q: es the most accurate estimate of the net realizable value of the receivables. The reason for it is…

A: Allowance method It is a method for accounting for bad debt expense, where uncollectible accounts…

Q: Which of the following is true when accounts receivable are factored without recourse? a. The…

A: Accounts receivable factoring without recourse means that the factoring company is not retaining…

Q: You drafted the following information and filed it up: Net income with the new equipment Less…

A: Needs to analyze the decisions of partnering with Dindin in the existing business of Alyssa.

Q: Short-term notes payable: O Can replace an account payable O Can be issued in return for money…

A: Short-term notes payable are considered a negotiable instrument. In this one-party agree to pay a…

Q: Bad debt is a deduction from the gross income when an account is written off Group of answer…

A: Gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms…

Q: expense on short term debt should be based on projected balances and short term interest rates.…

A: Basic Concept of accounting

Q: Which of the following is true? Short-term notes payable should be discounted at its present value,…

A: Note principal states the amount that the note signer agrees for paying back when the note matures…

Q: 1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: Which of the following is not a characteristic of a short-term note payable? Payment is due in less…

A:

Q: Financial Statement Focuses on accounting for liabilities and non-owner financing. Consider how…

A: The study of accounting is based on some fundamental accounting principles, concepts or conventions.…

Q: TRUE OR FALSE? 1. Current assets less current liabilities equals net assets.

A: Net assets Net assets are the value of a company’s assets minus its liabilities. It is calculated…

Q: Which of the following is an example of faithful representation?   A  Showing lease payments as a…

A:

Q: . Accounts receivable financing is the term used to describe which of the following types of loans…

A: In Accounts receivable financing companies make a collateral of its account receivables to get loan…

Q: Which of the following statements about "avoidable interest" is false? it is computed only on…

A: The avoidable interest measn the cost that is incurred to construct the long-term assets. It is also…

Q: In the PMT function, what is not true about the rate argument? Group of answer choices It assumes an…

A: Rate argument in PMT function is required and not optional and it assumes annual interest rate and…

Q: Explain why writing off a bad debt against a company's Allowance for Doubtful Accounts does not…

A: The estimated realizable value of a company's accounts receivable is not reduced by writing off a…

Q: 1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Swaps

A swap is a derivative contract in which two parties are agreed to exchange their cash flows from two different financial instruments for a defined period. In swap contracts, cash flows from one financial instrument are fixed and cash flow from other financial instruments is variable based on the interest rate, exchange rate, and commodity price. Swap contracts are transacted in an over-the-counter system. Swap contracts are utilized to hedge risk and mitigate loss.