B Chapter 8-2

B Chapter 8-2 - BChapter8 SourcesofCapital:Debt

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
B Chapter 8 Sources of Capital: Debt Liability : an obligation to an outside party  arising from a transaction or an event that  has already happened Some accounting liabilities are not legal  obligations (estimated warranty costs) Contingent Liability Liabilities  are a source of funds-AP allows  you to finance interest free and save cash Bonds (Debentures ): certificate promising  to pay its holder (1) a specified sum of  money at a stated date (maturity date), and 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(2) interest at a stated rate until the maturity  date  Covenants Indenture Issue of Bonds : Par, premium, and  Discount Bond Interest Expense : bond interest +  amortization of premium or discount Bond Retirement Bring interest up-to-date Cancel Bond and premium or discount Leased Assets Operating lease
Background image of page 2
Capital lease-Example p. 225 Other Liabilities: Current Liabilities Deferred Taxes Analysis of Capital Structure
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/07/2010 for the course ACCT 2030 taught by Professor Harris during the Spring '10 term at U. Memphis.

Page1 / 8

B Chapter 8-2 - BChapter8 SourcesofCapital:Debt

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online