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7252569-MIdterm-1 (dragged) 25 - Kieso Weygandt Warfield...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 14-9 30. Another way companies keep debt off the balance sheet is by leasing assets instead of buying them with debt. Presentations and Disclosure 31. Long-term debt that matures within one year should be reported as a current liability unless retirement is to be accomplished with other than current assets. 32. Companies that have large amounts and numerous issues of long-term debt frequently report only one amount in the balance sheet and support this with comments and schedules in the accompanying notes to the financial statements. These note disclosures generally indicate the nature of the liabilities, maturity dates, interest rates, call provisions, conversion privileges, restrictions imposed by the borrower, and assets pledged as security. Analysis 33. Ratios helpful in analysing a company’s solvency include those that help determine a company’s ability to pay interest and to repay long-term debt as it becomes due. Two of
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