Liabilities - Long-term
8 important questions on Liabilities - Long-term
What is a common outcome for many long-term liabilities?
If a long-term liability is due to mature in the current period, how is it classified?
It is still long-term if the intention is to refinance.
Outside of stocks, what method of fund raising is used for very substantial financial needs?
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What feature makes bonds very attractive?
What is it called when a bond can be paid off early at the discretion of the issuer?
What is a tax advantage of bonds vs. stock?
Four principal entries for bonds:
Regular interest payments
Interest accrual
Retirement
What happens when a bond is sold between interest payments?
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