--%>

Bonds payable

A form of long-term debt that appears  in the liabilities section of the balance sheet. A company sells bond as a way to borrow large amount of cash. The buyer pays for the bond and receives regular interest payment, annually or semiannually, for the duration of the bond, receives the principal at the maturity date of the bond. This type debt allows more than one lender to hold part of the debt. Bond is used when the amount needed by the borrower is too large for one lender to risk. Each bond which has a maturity value of $1,000, repre- sents a portion of the total debt. The bond agreement regarding payment is called the bond indenture and specifies the terms that determine the repayment

 

   Related Questions in Managerial Accounting

  • Q : Cash budget A plan for the cash coming

    A plan for the cash coming into and going out of a business. Based on the sale forecast,  the timing and amounts of  cash receipts. Based on forecast of resources necessary to  meet the sale forecast, management budgets the cash disbursements. This proc

  • Q : Avoidable interest The amount of

      The amount of interest that an organization would have avoided if it had not made the expenditures for an asset. Avoidable interest is calculated when an entity is self- constructing an asset. The cost of the asset can include material, labor, and overhead plus some interest. The c

  • Q : Calculate From the books of Aggarwal

    From the books of Aggarwal Bors, the following information have been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% The firm is proposing to buy a new plant which can generate additional annual profit of Rs. 10,000. The fixed

  • Q : Budget surplus Select the right answer

    Select the right answer of the question. If the economy has a standardized budget surplus, it means that: A) the public sector is exerting an expansionary impact on the economy. B) tax revenues would exceed government expenditures if full employment were achieved. C)

  • Q : What do you mean by the term Mission

    What do you mean by the term Mission statements? Briefly describe it.

  • Q : Things which Weaknesses comprises Write

    Write a brief note on the things which Weaknesses comprises?

  • Q : Provisional Entries Describe

    Describe Provisional Entries?

  • Q : Influence of managers

    Write down a short note on the influence of manager’s behavior in management accounting information?

  • Q : Partnership from Accounting point of

    Describe the status of partnership from an accounting point of view? Answer: From an accounting point of view, partnership is a separate business entity. From legal

  • Q : Market Analysis and Logic 1.

      1. Contribution After Marketing Assume that the sales forecast for brand TOJO is 160,000 units, and that you expect to sell 50% of these units through mass merchandisers,