--%>

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 : What is Service What do you mean by

    What do you mean by Service: It is an intangible product or task rendered directly to a client or customer.

  • Q : Acquisition entry on Balance Sheet 1.

    Q : Explain Standard Costing Standard

    Standard Costing: A costing technique which joins costs to cost objects based on reasonable approximations or cost studies and by the means of budgeted rates instead of according to actual costs incurred. The predictable cost of gener

  • Q : Calculating the Operating Cost &

    1.   HulaHug Corp., which manufactures hula hoops, currently has two product lines, the Roundabout and the Sassafras. HulaHug has total overhead of $124,478. HulaHug has identified the following information about its overhead activity pools and the two

  • Q : Basic accounting principles or concepts

    ACCOUNTING CONCEPTS: Presented below are basic accounting principles or concepts, with which hospital managers should be familiar and that they should understand i

  • Q : Number of Partners in Partnership What

    What is the maximum and minimum number of partners in each and every type of partnership? Answer: There must be at least two persons to build a Partnership. The maxi

  • Q : Human relation discuss the limitations

    discuss the limitations of human relations approaches to management

  • Q : Define Differential Cost Differential

    Differential Cost: The cost difference predicted when one course of action is adopted rather than others.

  • Q : Benefit of economic in accounting

    Write down a short note on the benefit of economic in accounting management information?

  • Q : Capital expenditure Expenditure that

    Expenditure that increases the dollar amount of fixed assets on the balance sheet. These outlays either increase the value of assets already owned or add additional assets. The payments increase the future benefit of an asset by extending the life of the asset, increa