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Unformatted text preview: -A bond that sells for less than its face amount Formula for Return on Equity:-Net income divided by average total shareholders’ equity Methods of Long Term Financing with Debt:-Notes payable, bonds, leases Term Bonds:-Bonds that mature on one specific date Serial Bonds:-Bonds that mature in installments Formula to Compute the Return on Assets:-Net income divided by average total assets Premium:-A bond that sells for more than its face amount Early Retirement of a Bond Includes:-Recording of a gain or loss-Payment of cash-Elimination of the liability Convertible Bonds:-Retired when the bondholder exchanges them for the issuing company’s stock Lease:-A contractual arrangement in which an owner provides a user the right to use an asset for a specified period of time...
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This note was uploaded on 11/23/2011 for the course ACCT 2103 taught by Professor Burnett during the Fall '08 term at Oklahoma State.
- Fall '08
- Financial Accounting