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8 Cards in this Set
- Front
- Back
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What is a long-term Liability?
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Represents a probable sacrifice of economic benefits over a future period greater than a year.
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What are Sales Proceeds?
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$ amount received by the issuer of the bond when the bonds are issued
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What is the face value?
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the amount of cash payable by the isssuer to the bondholder when the bonds mature.
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What is the stated rate?
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Rate at which the periodic interest payments are calculated (AKA: nominal rate and coupon rate)
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What is the market rate?
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rate of interest demanded by buyers of the bonds.
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How is cash received from the sales of bonds recorded on the financial statements?
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reocorded on Statement of Cash Flows and reported as financing cash inflow.
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How are bonds payable recorded on the issuing company's balance sheet?
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Reported on Balance Sheet at net book value
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What is Net Book Value?
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Face Value of the bonds minus any unamortized discount or plus any unamortized premium
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