hen the effective cost of d

Explain required rate of return on debt

Define required rate of return on debt

a. Define what the operational cycle is. b. Indicate in your own words the meaning of the following concepts related to bonds payable: a) maturity value b) face value c) market value d) par value.

In U.S. GAAP, bond issue costs are considered ________. Group of answer choices a period cost a cost of borrowing that reduces the effective interest expense an initial cost that is expensed when the bonds are issued an element in determining the carrying value of the bonds outstanding

Discuss how a form of debt can be classified as both Current and Long-Term Liabilities.  Why do investors care?

ll of the following are differences between IFRS and GAAP in accounting for liabilities except: a.    When a bond is issued at a discount, GAAP records the discount in a separate contra liability account. IFRS records the bond net of the discount. b.    Under IFRS, bond issuance costs reduce the carrying value of the debt. Under GAAP, these costs are recorded as an asset and amortized to expense over the terms of the bond. c.    GAAP, but not IFRS, uses the term “troubled-debt restructurings.” d.    GAAP, but not IFRS, uses the term “provisions” for contingent liabilities which are accrued

Describe the method of determining the Cost of Debt?

6. When is interest expense more than interest paid? a. when bonds are sold at a premiumb. when bonds are sold at parc. when bonds are sold at a discountd. when bonds are sold at a yield