Bonds payable, A form of long-term debt that appears in the liabilities section of the

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

View Complete Question

Related Questions in Managerial Accounting

Q : Define Responsibility Center

Responsibility Center: It is an organizational unit headed by the manager or a group of managers who are responsible for its actions. The responsibility centers can be measured as revenue centers (that is responsible for revenue or sa

Q : Contents of a partnership deed State

State some contents of a partnership deed. Answer: A) Name of the firm.B) Name and complete address of the Partners.C) The date of formation and period of Partnership.D) Ratio in which gain or loss

Q : What do you mean by the term Mission

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

Q : Explain Full-Absorption Costing

Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

Q : Aging of Accounts What are Aging of

What are Aging of Accounts? Briefly illustrate it.

Q : Describe Cost Reduction Cost Reduction

Cost Reduction: The procedure of looking for, finding and eliminating unwarranted expenses from the business to raise gains without containing a negative impact on the product quality. Most of the business managers will engage in periodic cost reducti

Q : Define Cost Object Cost Object (also

Cost Object (also referred to as Cost Objective): It is an activity, item, or output whose cost is to be computed. In a wide sense, a cost object can be an organizational division, task, a function, product, service, or a customer.

Q : Capital account An account used in a

An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning

Q : Blackout period A defined time period

A defined time period in accounting for stock options. In the mean while the blackout period person granted the option is not allowed to exercise it. This usually occurs after the granting of the stock options and allows the price of the stock to increase above the exercise price. <

Q : Acquisition entry on Balance Sheet 1.

Discover Q & A

Leading Solution Library

Avail More Than 1445636 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1933235
Asked

3,689

Active Tutors

1445636

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment