Why A debt security pays a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security?

Q: Define Long-term debt. Explain the types of Long-term debt.

A:

Q: definition and recognition criteria of liabilities

A: Liability is the obligation to be repaid or loss to be met in future.

Q: A debt security pays A) A fixed level of income for the life of the owner. B) A variable level of…

A: The debt securities are those assets or financial assets that provide regular interest payments to…

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: What are Contingent Liabilities?  Give an example.  What are the factors that determine the reason…

A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…

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: he amortization of premium on bonds payable will _____________ the net income.

A: Net Income:-  Net income is also considered as the net earnings and net profit of the business that…

Q: What evidence is necessary to demonstrate the ability to defer settlement of short-term debt?

A: Short-term debt: Short-term debt refers to the current liability of an organization. This means that…

Q: how do compute thesocial security taxable earnings?

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet…

A: Equity, liabilities, and assets are part of the balance sheet of a company.  The balance sheet is…

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: 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: The gain on early retire

A: Early retirement of bonds payable is where the bond holders are repaid before the maturity date.…

Q: What amount should be reported as total noncurrent liabilities?

A: Answer: 1,620,00

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: The currently maturing portion of long-term debt should be classified as a current liability if the…

A: Answer: The currently maturing portion of long term debt should be classified as current liability…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

Q: How is interest determined in a capital lease transaction? How does the approach compare to other…

A:

Q: The application of the present value factors in the computation of carrying amounts of bonds payable…

A: Introduction:- The following principal application for the present value factors in the computation…

Q: How is interest expense determined in a finance lease transaction? How does the approach compare to…

A: Lease:   Lease refers to a contractual agreement whereby the right to use an asset for a particular…

Q: ne loans which are to be repaid within a short O a. Fixed liabilities b. Long-term liabilities C.…

A: Ans. Liabilities can be of many types - i. Current Liabilities  ii. Non-current Liabilities iii.…

Q: Explain required rate of return on debt

A: Debt is some amount of money owed by a borrower to the creditor. Debt can be two types. One is…

Q: In what way do current liabilities and long-term liabilities differ from each other?

A: Current liabilities are liabilities that are due within one year. In other words, current…

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: amortized debt premium should be reported on the balance sheet of the insurer as a  Group of answer…

A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium…

Q: How are gains and losses from extinguishment of a debt classified in the income statement? What…

A: Bonds payable: A legal contract for a long-term debt made between the lender and the beneficiary;…

Q: What is the difference between fully secured liabilities, partially secured liabilities, and…

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

Q: How is the premium or discount on debt investments at fair value through profit or loss accounted…

A: In case of FVTPL the initial  recognition  is at fair value.

Q: A fixed-income security is defined as. A) a debt obligation that pays a fixed rate of return for a…

A: A fixed income security is security which pays fixed income whatever the condition may be

Q: Due to banks Deposits from customers Other liabilities Subordinated debt Taxation classify it into…

A: current liabilities - current liabilities should be repaid by the company within one year. examples…

Q: of the follwoing are financial claims

A: Pension obligation These entitle the employee to make a financial claim against the employer. Bonds…

Q: When the cost of a long-term debt security is different from the maturity value, the difference is…

A: Maturity value  of a debt security is amount  payable  at Date of maturity  to bond holders.

Q: Can you explain Collateralized debt obligation

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

Types of Money Market Instruments