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Study sets matching "accounting chapter 14 long liabilities"

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Study sets matching "accounting chapter 14 long liabilities"

45 terms
Intermediate Accounting - chapter 14 Long term liabilities
Bearer bond
Bond
Bond certificate
Bond indenture
A bond that is payable to the bearer or person who has physic…
A long-term debt instrument issued by corporations to raise m…
The note given to bondholders
The bond contract
Bearer bond
A bond that is payable to the bearer or person who has physic…
Bond
A long-term debt instrument issued by corporations to raise m…
27 terms
Accounting Chapter 14: Long Term Liabilities
Bond
Par Value of the Bond (Face Value)
Three Advantages of Bonds
Disadvantages of Bonds
an issuers promise to pay an amount identified as the par val…
Paid at a specific future date known as the bond's maturity d…
1) Bonds do not affect current control... 2) Interest on bonds i…
1) Bonds can decrease return on equity... 2) bonds require payme…
Bond
an issuers promise to pay an amount identified as the par val…
Par Value of the Bond (Face Value)
Paid at a specific future date known as the bond's maturity d…
21 terms
Accounting Chapter 14: Long-Term Liabilities
Amortization schedule
Mortgages payable
Bond payable
Face value
A schedule that details each loan payment;s allocation betwee…
Long-term debts that are backed with a security interest in s…
A long-term debt issued to multiple lenders called bondholder…
The amount the borrower must pay back to the bondholders on t…
Amortization schedule
A schedule that details each loan payment;s allocation betwee…
Mortgages payable
Long-term debts that are backed with a security interest in s…
46 terms
Intermediate Accounting I: Long-term Liabilities (Chapter 14)
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
dividends payable in stock.
bond indenture.
debenture bonds.
bearer bonds.
An example of an item which is not a l…
dividends payable in stock.
The covenants and other terms of the a…
bond indenture.
46 terms
Intermediate Accounting I: Long-term Liabilities (Chapter 14)
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
dividends payable in stock.
bond indenture.
debenture bonds.
bearer bonds.
An example of an item which is not a l…
dividends payable in stock.
The covenants and other terms of the a…
bond indenture.
46 terms
Intermediate Accounting I: Long-term Liabilities (Chapter 14)
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
dividends payable in stock.
bond indenture.
debenture bonds.
bearer bonds.
An example of an item which is not a l…
dividends payable in stock.
The covenants and other terms of the a…
bond indenture.
14 terms
12e Financial Accounting - Chapter 14 - Long-Term Liabilities: Bonds and Notes
bond
bond indenture
carrying amount
contract rate
A form of an interest-bearing note used by corporations to bo…
The contract between a corporation issuing bonds and the bond…
The balance of the bonds payable account (face amount of the…
The periodic interest to be paid on the bonds that is identif…
bond
A form of an interest-bearing note used by corporations to bo…
bond indenture
The contract between a corporation issuing bonds and the bond…
46 terms
Intermediate Accounting I: Long-term Liabilities (Chapter 14)
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
dividends payable in stock.
bond indenture.
debenture bonds.
bearer bonds.
An example of an item which is not a l…
dividends payable in stock.
The covenants and other terms of the a…
bond indenture.
10 terms
Principles of Accounting 1 - Chapter 14: Long Term Liabilities: Bonds
Bond
Earnings per share (EPS)
Bond indenture
Contract rate (coupon rate)
A form of an interest-bearing note
Measures the income earned by each share of common stock
The underlying contract between the company issuing bonds and…
The interest rate to be paid on the face amount of the bond
Bond
A form of an interest-bearing note
Earnings per share (EPS)
Measures the income earned by each share of common stock
59 terms
Chapter 14: Long-Term Liabilities
The covenants and other terms of the a…
The interest rate written in the terms…
A bond for which the issuer has the ri…
A bond issued in the name of the owner…
bond indenture.
coupon rate, nominal rate, or stated rate.
callable bond.
registered bond
The covenants and other terms of the a…
bond indenture.
The interest rate written in the terms…
coupon rate, nominal rate, or stated rate.
35 terms
AF 311 - Chapter 14: Long-Term Liabilities (Intermediate Accounting)
Bearer Bonds
Bond Discount
Bond Indenture
Bond Premium
Bonds without the name of the owner, made payable to whoever…
The difference between the selling price and par when the bon…
A contract for a bond that represents a promise to pay a sum…
The difference between the selling price and par when the bon…
Bearer Bonds
Bonds without the name of the owner, made payable to whoever…
Bond Discount
The difference between the selling price and par when the bon…
46 terms
Intermediate Accounting I: Long-term Liabilities (Chapter 14)
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
dividends payable in stock.
bond indenture.
debenture bonds.
bearer bonds.
An example of an item which is not a l…
dividends payable in stock.
The covenants and other terms of the a…
bond indenture.
61 terms
Chapter 14- Long-Term Liabilities: ACC 927
bearer (coupon) bonds
bond discount
bond indenture
bond premium
Bonds without the name of the owner, which may be transferred…
The difference between the face value of a bond and its selli…
A contract for a bond that represents a promise to pay a sum…
The difference between the face value of a bond and its selli…
bearer (coupon) bonds
Bonds without the name of the owner, which may be transferred…
bond discount
The difference between the face value of a bond and its selli…
13 terms
ACCT 352 - Chapter 14 Long-Term Liabilities
nature of long-term debt
bonds
bond indenture
debenture bond
- liabilities signify creditors' interest in a company's asse…
-a bond issue divides large liabilities into many, smaller li…
- describes the specific promises made to bondholders; indent…
- bond secured by the "full faith and credit" of a company... -…
nature of long-term debt
- liabilities signify creditors' interest in a company's asse…
bonds
-a bond issue divides large liabilities into many, smaller li…
23 terms
Chapter 14: Long-Term Liabilities
Long-term liabilities are recorded at…
Long-term notes payable are valued at...
Notes issued at face value
Zero interest bearing notes
Present value of the amount being paid using the market inter…
The present value of its future interest and principal cash f…
No premium or discount
Always have a discount, no cash paid as interest
Long-term liabilities are recorded at…
Present value of the amount being paid using the market inter…
Long-term notes payable are valued at...
The present value of its future interest and principal cash f…
23 terms
Chapter 14: Long-term Liabilities
Bonds
Generally used to obtain large amounts…
Advantages of Bonds
Major Disadvantage of Bonds
A form of interest-bearing notes payable (they are classified…
Why Issue Bonds?
Stockholder control is not affected.... Tax savings result (inte…
Interest must be paid periodically.
Bonds
A form of interest-bearing notes payable (they are classified…
Generally used to obtain large amounts…
Why Issue Bonds?
20 terms
Chapter 14 Long-Term Liabilities
Companies usually make bond interest p…
A mortgage bond is referred to as a de…
Bond issues that mature in installment…
If the market rate is greater than the…
True
False
True
False
Companies usually make bond interest p…
True
A mortgage bond is referred to as a de…
False
31 terms
Chapter 14 - Long Term Liabilities
Bearer (coupon) bonds
Bond indenture
Callable bonds
Carrying value
Bonds without the name of the owner, which may be transferred…
A contract for a bond that represents a promise to pay a sum…
Bonds that give the issuer the right to call and retire the b…
The face amount of a bond minus any unamortized discount, or…
Bearer (coupon) bonds
Bonds without the name of the owner, which may be transferred…
Bond indenture
A contract for a bond that represents a promise to pay a sum…
32 terms
Chapter 14 Long Term Liabilities
Long term debt
bonds represent what two things?
what must a company do when issuing bo…
selling price of a bond issue is set b…
long term debt consist of probable future sacrifices of econo…
1. sum of money at designated maturity date... 2. periodic inter…
1. arrange for underwriters... 2. obtain SEC approval ... 3. have b…
1. supply and demand... 2. risk... 3. market and economy conditions
Long term debt
long term debt consist of probable future sacrifices of econo…
bonds represent what two things?
1. sum of money at designated maturity date... 2. periodic inter…
35 terms
Chapter 14 Long-term liabilities
bearer (coupon) bonds
bond indenture
callable bonds
carrying value
a bond not recorded in the name of the owner and may be trans…
the contract that a bond arises from
bonds that give the issuer the right to call and redeem the b…
book value
bearer (coupon) bonds
a bond not recorded in the name of the owner and may be trans…
bond indenture
the contract that a bond arises from
30 terms
Chapter 14 - Long-Term Liabilities
Secured Bonds
Unsecured Bonds
Junk Bonds
Term Bonds
Bonds backed by a pledge of some sort of collateral
Bonds not backed by collateral
Bonds that are unsecured and very risky, but offer a high int…
Bond issues that mature on a single date
Secured Bonds
Bonds backed by a pledge of some sort of collateral
Unsecured Bonds
Bonds not backed by collateral
59 terms
Chapter 14: Long-Term Liabilities
The covenants and other terms of the a…
The interest rate written in the terms…
A bond for which the issuer has the ri…
A bond issued in the name of the owner…
bond indenture.
coupon rate, nominal rate, or stated rate.
callable bond.
registered bond
The covenants and other terms of the a…
bond indenture.
The interest rate written in the terms…
coupon rate, nominal rate, or stated rate.
12 terms
Chapter 14: Long Term Liabilities
Bonds Payable
Types of bonds
Discounts and Premiums
Bonds issued at Par
Bond issuance will typically require the approval of the boar…
pg 765
The market conditions could change between the time to firm d…
Issued 150,000 7% 10 yr semi annual on Jan 1 2016. Payments a…
Bonds Payable
Bond issuance will typically require the approval of the boar…
Types of bonds
pg 765
Chapter 14 Long-term Liabilities
true or false... U.S. GAAP and IFRS have…
true or false... Under IFRS, bond issue c…
true or false... Under IFRS, all troubled…
true or false... Under IFRS the required…
false
false
true
true
true or false... U.S. GAAP and IFRS have…
false
true or false... Under IFRS, bond issue c…
false
17 terms
ACC Long-Term Liabilities Chapter 14
Amoritzation Schedule
Mortgages payable
Bonds Payable
Face Value
A schedule that details each loan payment's allocation betwee…
Long-term debts that are backed with a secruity interest in s…
A long term debt issued to mulitiple lenders called bondholde…
The amount a borrower must pay back to the bondholders on the…
Amoritzation Schedule
A schedule that details each loan payment's allocation betwee…
Mortgages payable
Long-term debts that are backed with a secruity interest in s…
9 terms
Chapter 14: Long-Term Liabilities
Long Term Creditors
Covenants or restrictions
Types of Bonds
Bonds represent 2 promises
do not vote in management affairs - receive only interest, re…
Started in the bond indenture or note agreement
Term ... Serial ... Secured ... Unsecured ... Convertible Coupon
1. Pay the face value (principle) back upon maturity of the b…
Long Term Creditors
do not vote in management affairs - receive only interest, re…
Covenants or restrictions
Started in the bond indenture or note agreement
10 terms
Chapter 14 Long-term Liabilities
Stated Rate
Market rate
Interest Paid
Interest Expense
written in the terms of the bond
provides an acceptable return with the risk
(stated rate x face value of bond)
(market rate x carrying value)
Stated Rate
written in the terms of the bond
Market rate
provides an acceptable return with the risk
16 terms
Chapter 14 Long Term Liabilities
Bond
Par Value of a Bond
Advantages of bonds
Disadvantages of bonds
Issuers written promise to pay an amount identified as the pa…
Paid a specific future date known as the bonds maturity rate
1. Bonds do not affect owners control ... 2. Interest on bonds i…
1. Bonds can decrease return on equity ... 2. Bonds require paym…
Bond
Issuers written promise to pay an amount identified as the pa…
Par Value of a Bond
Paid a specific future date known as the bonds maturity rate
16 terms
Chapter 14 Long-Term Liabilities
Bond
Advantages to bonds
increases
bonds authorized, par value, interest…
A written promise to pay an amount identified as the par valu…
Bonds do not affect owner control; Interest on bonds is tax d…
Return on equity _____ when the expected rate of return from…
Authorization of bond issuance includes the number of _______…
Bond
A written promise to pay an amount identified as the par valu…
Advantages to bonds
Bonds do not affect owner control; Interest on bonds is tax d…
25 terms
Chapter 14: Long-Term Liabilities
bond
par value of a bond
advantages of bonds
disadvantages of bonds
its issuer's written promise to pay an amount identified as t…
paid at a specified future date known as the bond's maturity…
1. bonds do not affect owner control... 2. interest on bonds is…
1. bond can decrease return on equity... 2. bonds require paymen…
bond
its issuer's written promise to pay an amount identified as t…
par value of a bond
paid at a specified future date known as the bond's maturity…
34 terms
ACC3320 Chapter 14: Long-Term Liabilities
Bearer (Coupon) Bonds
Bond Indenture
Callable Bonds
Carrying Value
A bond that is not recorded in the name of the owner and may…
The contract defining a bond.
Bonds that give the issuer the right to call and redeem the b…
The book value of a bond.
Bearer (Coupon) Bonds
A bond that is not recorded in the name of the owner and may…
Bond Indenture
The contract defining a bond.
10 terms
Chapter 14 - Long-Term Liabilities
amortization schedule
bond payable
face value
stated interest rate
a schedule that details each loan payments allocation between…
a long-term debt issued to multiple lenders called bondholder…
the amount a borrower must pay back to the bondholders on the…
the interest rate that determines the amount of cash interest…
amortization schedule
a schedule that details each loan payments allocation between…
bond payable
a long-term debt issued to multiple lenders called bondholder…
75 terms
Chapter 14: Long Term Liabilities
when government debt is greater then GDP
long-term debt
restrictions of long-term
rule of debt
when this economic trend happens the interference of the gove…
probable future sacrifices of economic benefits from current…
long term debt has covenants and restrictions to protect lend…
the greater the proportion of debt in the capital structure t…
when government debt is greater then GDP
when this economic trend happens the interference of the gove…
long-term debt
probable future sacrifices of economic benefits from current…
9 terms
Chapter 14 Long Term Liabilities
Defeasance
3 Ways to finance
Interest Rate on Bond
Fair Value Option
When a company wants to retire their obligation early however…
1. Bonds... 2. Equity... 3. Internally developed from free cash flow
Also known as stated rate or coupon rate which is the amount…
Should always be used when the information is available for b…
Defeasance
When a company wants to retire their obligation early however…
3 Ways to finance
1. Bonds... 2. Equity... 3. Internally developed from free cash flow
18 terms
Chapter 14 - Long-Term Liabilities
Imputed interest rate
Effective interest method
Effective yield/Market rate
Registered bonds
the rate that makes the cash that is received now equal to th…
1. Interest expense is calculated first by multiplying the ca…
the interest rate that is actually earned by the bondholders.
bonds that are issued in the owner's name --> they must be su…
Imputed interest rate
the rate that makes the cash that is received now equal to th…
Effective interest method
1. Interest expense is calculated first by multiplying the ca…
10 terms
Long Term Liabilities Chapter 14
secured bonds
unsecured bonds
term bonds
serial bonds
gives holders added protection against the issuer's default
are backed by the issuer's general credit standing
are scheduled for maturity on one specified date
mature at more than one date and thus are usually repaid over…
secured bonds
gives holders added protection against the issuer's default
unsecured bonds
are backed by the issuer's general credit standing
44 terms
Chapter 14: Long-Term Liabilities
Bond
Par Value of a Bond
Advantages of Bonds
Return on equity increases when the ex…
Issuer's written promise to pay an amount identified as the p…
Known as face amount or face value. It is paid at a specified…
1) Bonds do NOT affect owner control. ... 2) Interest on bonds i…
higher than the rate of interest expense on the debt financing.
Bond
Issuer's written promise to pay an amount identified as the p…
Par Value of a Bond
Known as face amount or face value. It is paid at a specified…
31 terms
Chapter 14: Long Term Liabilities
Advantages of Bonds
Disadvantages of Bonds
Bond market values are expressed as...
T/F: Bonds only have 1 owner for their…
1. Bonds does not give ownership controls.... 2. Interest on bon…
1. Bonds can decrease return on equity. (Earning less than ex…
...percentages of par value.
False.
Advantages of Bonds
1. Bonds does not give ownership controls.... 2. Interest on bon…
Disadvantages of Bonds
1. Bonds can decrease return on equity. (Earning less than ex…
35 terms
ACG 3141 Chapter 14 (Long-Term Liabilities
Bearer Bonds
Bond Discount
Bond Indenture
Bond Premium
Bonds without the name of the owner, made payable to whoever…
The difference between the selling price and par when the bon…
A contract for a bond that represents a promise to pay a sum…
The difference between the selling price and par when the bon…
Bearer Bonds
Bonds without the name of the owner, made payable to whoever…
Bond Discount
The difference between the selling price and par when the bon…
32 terms
Chapter 14: Long-Term Liabilities Key Terms
Annuity
Bearer Bond
Bond
Bond Certificate
Series of equal payments at equal intervals. Intervals= perio…
Bonds made payable to whoever holds them (the bearer); also c…
Written promise to pay the bond's par (or face) value and int…
Document containing bond specifics such as issuer's name, bon…
Annuity
Series of equal payments at equal intervals. Intervals= perio…
Bearer Bond
Bonds made payable to whoever holds them (the bearer); also c…
35 terms
Accounting 301 CH 14 (Long-Term Liabilities)
READ
_____ bonds are backed by a pledge of…
___ bonds are bond issues that mature…
____ bonds are bond issues that mature…
A corporation, per its bylaws, usually requires approval by t…
Secured bonds
Term bonds
Serial bonds
READ
A corporation, per its bylaws, usually requires approval by t…
_____ bonds are backed by a pledge of…
Secured bonds
100 terms
Intermediate Accounting Chapter 13, 14 & 15. Current Liabilities and contingencies. Long-term Liabilities. Stockholders' equity.
A zero-interest bearing note is record…
The face amount of a zero-interest bea…
Which of the following is not an examp…
Which of the following is not true abo…
True... The face amount of a zero-interest bearing note is equal…
False... Stock dividends distributable is not a liability. They…
b... Preferred dividends in arrears are not a liability until de…
b... Discount on Notes payable account should not be reported as…
A zero-interest bearing note is record…
True... The face amount of a zero-interest bearing note is equal…
The face amount of a zero-interest bea…
False... Stock dividends distributable is not a liability. They…
42 terms
Chapter 14 Concepts (Long-Term Liabilities)
Bond
Par Value
Advantages of Bonds
Disadvantages of Bonds
Issuer's written promise to pay an amount identified as the p…
Face amount of a bond paid at the maturity
1) They do not affect owner control... 2) Interest on bonds is t…
1) They can decrease return on equity... 2) They require payment…
Bond
Issuer's written promise to pay an amount identified as the p…
Par Value
Face amount of a bond paid at the maturity
39 terms
Chapter 14- Long-Term Financial Liabilities: ACC 927
An example of an item which is not a l…
The covenants and other terms of the a…
The term used for bonds that are unsec…
Bonds for which the owners' names are…
a. dividends payable in stock.
a. bond indenture.
b. debenture bonds.
a. bearer bonds.
An example of an item which is not a l…
a. dividends payable in stock.
The covenants and other terms of the a…
a. bond indenture.
31 terms
Chapter 14- Long-Term Liability
Annuity
Bearer bonds
Bond
Bond certificate
Series of equal payments at equal intervals.
Bonds made payable to whoever holds them (the bearer); also c…
Written promise to pay the bond's par (or face) value and int…
Document containing bond specifics such as issuer's name, bon…
Annuity
Series of equal payments at equal intervals.
Bearer bonds
Bonds made payable to whoever holds them (the bearer); also c…
15 terms
Chapter 14: Long-Term Liabilities: Bonds and Notes
Bond
Earnings Per Share (EPS)
Bond Indenture
Contract Rate
A form of an interest-bearing note used by corporations to bo…
Net income per share of common stock outstanding during a per…
The contract between a corporation issuing bonds and the bond…
The periodic interest to be paid on the bonds that is identif…
Bond
A form of an interest-bearing note used by corporations to bo…
Earnings Per Share (EPS)
Net income per share of common stock outstanding during a per…
16 terms
Chapter 14: Long-Term Liabilities: Bonds and Notes
Three ways to finance corporations
Bond
Bond indenture
Proceeds received for the bonds depend…
1. Short-term debt (purchasing goods/services on account)... 2.…
Interest-bearing note
Underlying contract between the company issuing bonds and the…
1. Face amount of the bonds (amount due at maturity)... 2. Inter…
Three ways to finance corporations
1. Short-term debt (purchasing goods/services on account)... 2.…
Bond
Interest-bearing note
16 terms
Chapter 14 Long-Term Liabilities: Bonds and Notes
Bond
Earnings per share (EPS) on common stock
Bond indenture
Term bonds
A form of an interest-bearing note used by corporations to bo…
The profitability ratio of net income available to common sha…
The contract between a corporation issuing bonds and the bond…
When all bonds of an issue mature ate the same time
Bond
A form of an interest-bearing note used by corporations to bo…
Earnings per share (EPS) on common stock
The profitability ratio of net income available to common sha…
30 terms
Chapter 14: Long-term Liabilities 2
The bond carry value can be determined…
Point
A bond is its issuer's written promise…
A bond discount is actually added inte…
Par value - Discount on Bond Payable
A premium decreases Bond interest Expense; a Discount Increas…
Par
Expense
The bond carry value can be determined…
Par value - Discount on Bond Payable
Point
A premium decreases Bond interest Expense; a Discount Increas…
30 terms
Chapter 14 Long-Term Liabilities: Bonds and Notes
Bond
Earnings per share (EPS) on common stock
Bond indenture
Term bonds
A form of an interest-bearing note used by corporations to bo…
The profitability ratio of net income available to common sha…
The contract between a corporation issuing bonds and the bond…
When all bonds of an issue mature ate the same time
Bond
A form of an interest-bearing note used by corporations to bo…
Earnings per share (EPS) on common stock
The profitability ratio of net income available to common sha…
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