Questions from Financial Accounting

Q: Define note payable. When must a company reclassify a long-

Define note payable. When must a company reclassify a long-term note payable as a current liability?

Q: Define contingent liability. What conditions must be met in order for

Define contingent liability. What conditions must be met in order for a contingent liability to be reported on a company’s balance sheet?

Q: What is the formula used for calculating the cash payment bond investors

What is the formula used for calculating the cash payment bond investors will receive for interest each period? What is the formula used to calculate interest expense each period?

Q: When market interest rates increase, do bond prices increase or decrease

When market interest rates increase, do bond prices increase or decrease?

Q: What are the primary characteristics of a bond? For what purposes

What are the primary characteristics of a bond? For what purposes are bonds usually issued?

Q: Pool Corporation, Inc., is the world’s largest wholesale distributor of

Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Po...

Q: Differentiate between a bond coupon rate and the market rate of interest

Differentiate between a bond coupon rate and the market rate of interest.

Q: Explain what determines whether a bond is issued at a discount or

Explain what determines whether a bond is issued at a discount or a premium.

Q: Miga Company and Porter Company both bought a new delivery truck on

Miga Company and Porter Company both bought a new delivery truck on January 1, 2014. Both companies paid exactly the same cost, $30,000, for their respective vehicles. As of December 31, 2017, the net...

Q: Leslie, Inc., followed the practice of depreciating its building on

Leslie, Inc., followed the practice of depreciating its building on a straight-line basis. A building was purchased in 2016 and had an estimated useful life of 25 years and a residual value of $20,000...