What is meant by ‘Issue of debenture at discount and redeemable at premium?

Q: What is the purpose of an allowance for uncollectibles and why is it important?

A: Accounts receivable is the current asset and the amount that is not received yet from the customer…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: Explain how the present value of an ordinary annuityinterest table is converted to the present value…

A:

Q: What interest rates should be used in determining the amount of interest to be capitalized? How…

A:

Q: What are the most frequent uses of contingent payments?

A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…

Q: Title Explain how a borrowing cost could arise as part of the measurement of a provision. Illustrate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

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: What factors should be considered in determining the issue price of a debenture ?

A: Debentures are the long term debt issued to pursue a new project. Interest paid in debentures are…

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: Difference between annuity and lump sum payment.

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Taxable interest income is active or passive or portfolio ?

A: Active income is an income that is earned by performing a service. Active income includes salaries,…

Q: e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary…

A: Annuities are instruments that involve fixed payments. There are mainly two types of annuities i.e.…

Q: 5. Related to insurance, what is a deductible and how does it

A: In insurance scheme there is always mentioned deductible amount.

Q: Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables…

A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…

Q: When a note payable is issued for property, goods, or services, the present value of the note maybe…

A: The note payable is issued to creditors which is to be paid off at the maturity date.

Q: When intially recognizing the cash surrender value, what is the reason behind the allocation between…

A: Matching Principle Concept-:Matching precept is the accounting belief that compels that 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: What is meant by Premium on redemption of debentures account?

A: Premium on redemption of debenture account: Premium on redemption of debenture is the amount paid to…

Q: Differentiate annuity dues and deferred annuities.

A: An annuity can be divided into two types: Annuity due: Unlike a regular annuity, annuity due…

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: he following are based on FASB Codification.  #1. Describe the accounting for refund liabilities.

A: Refund liability states the consideration amount which business does not expect to be entitled to as…

Q: Which of the following creates a taxable temporary- difference?

A: Introduction: A transitory difference is the difference between an asset's or liability's income…

Q: elationship between an ordinary annuity and an annuity due. Com

A: The future value is computed using the following…

Q: What does issue of debentures for consideration other that cash means?

A: Debenture Issued for consideration other than cash:A company can purchase assets from other…

Q: Loans and receivable should be measured subsequent to initial recognition at *   a. Amortized cost…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: The process that determines the present value of a single payment or stream of payments to be…

A: By computing the present value of payment received in the future we know about the time value of…

Q: What is the difference between the APBO and the EPBO? What are the components of postretirement…

A: Difference between the APBO and the EPBO:Expected pension benefit obligation (EPBO): The amount of…

Q: What are the Classifications of Annuity.

A: An Annuity is a periodic payment which are made from time to time from a lump sum corpus.

Q: Describe the conditions that would make the use of advance-discounts appropriate.

A: Discount means a selling of goods or service below the price of goods. This reduction in price is…

Q: Differences between Accrued Interest and Payments?

A: Answer: An accrued interest is nothing but interest on a loan or an interest on bond that has been…

Q: What is a lump-sum purchase, and how is it accounted for?

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Q: What factors should be consi

A: Debenture   A debenture is a type of debt instrument unsecured by collateral. Since debentures…

Q: Explain why we record interest in the period in which we incur it rather than in the period in which…

A: Given: The record of interest in the incurred period rather than the period of payment.

Q: Which of the following is classified as nonmonetary? a. Cash surrender value b. Long-term receivable…

A: Nonmonetary item is an asset or liability that does not have a fixed exchange cash value, but whose…

Q: . Which of the following may not be equal to the contract rate of interest? a. stated rate b.…

A: Contract rate of interest is the defined rate of interest on bonds, notes or loan.

Q: What is the gain on extinguishment of the note payable?

A: option b is the answer.

Q: Suppose that all possible types of perpetuities (differentiated in payment starting periods and…

A: A perpetual annuity is a policy that you pay indefinitely. In finance, eternity is a constant flow…

Q: Can you explain Collateralized debt obligation

A: A collateralized debt obligation (CDO) is a complicated dependent finance product this is…