Accounting Chapter 10 Reporting and Analyzing Liabilities

A legal document that indicates the name of the issuer, the face value of the bonds, and such other data as the contractual interest rate and the maturity date of the bonds.

A form of interest-bearing notes payable issued by corporations, universities, and governmental entities.

Bonds that the issuing company can retire at a stated dollar amount prior to maturity.

A contractual agreement allowing one party (the lessee) to use the asset of another party (the lessor); accounted for like a debt-financed purchase by the lessee.

Events with uncertain outcomes that may represent potential liabilities.

Rate used to determine the amount of interest the borrower pays and the investor receives.

Bonds that can be converted into common stock at the bondholder's expense.

A debt that a company reasonably expects to pay (1) from existing current assets or thought the creation of other current liabilities, and (2) within one year or the operating cycle, whichever is longer.

The difference between the face value of a bond and its selling price, when a bond is sold for less that its face value.

A method of amortizing bond discount or bond premium that results in periodic interest expense equal to a constant percentage of the carrying value of the bonds.

Rate established when bonds are issued that remains constant in each interest period.

Amount of principal due at the maturity date of the bond.

Obligations that a company expects to pay more than one year in the future.

The rate investors demand for loaning funds to the corporation.

The date on which the final payment on a bond is due from the bond issuer to the investor.