Questions from Survey Accounting

Q: What is the difference between classification of a note as short term

What is the difference between classification of a note as short term or long term?

Q: What is a current liability? Distinguish between a current liability and

What is a current liability? Distinguish between a current liability and a long-term debt.

Q: What are some advantages of issuing bonds versus borrowing from a bank

What are some advantages of issuing bonds versus borrowing from a bank?

Q: What are some disadvantages of issuing bonds?

What are some disadvantages of issuing bonds?

Q: What mechanism is used to adjust the stated interest rate to the

What mechanism is used to adjust the stated interest rate to the market rate of interest?

Q: What type of transaction is the issuance of bonds by a company

What type of transaction is the issuance of bonds by a company?

Q: If a bond is selling at 97½, how much cash will

If a bond is selling at 97½, how much cash will the company receive from the sale of a $1,000 bond?

Q: How does recording accrued interest affect the accounting equation?

How does recording accrued interest affect the accounting equation?

Q: How is the carrying value of a bond computed?

How is the carrying value of a bond computed?

Q: List and describe nine activities of a strong internal control system discussed

List and describe nine activities of a strong internal control system discussed in the chapter.