Acct410 test 2024 - Study guides, Class notes & Summaries

Which of the following are characteristics of a liability? 1 Are measured, recorded, and reported at their face amount. 2 The liability transaction must have already occurred. 3 The company has little or no discretion to avoid the future sacrifice of economic benefits. - ANSWER 2 and 3 On September 1, 2016, a company borrowed cash and signed a 1-year, interest-bearing note on which both the principal and interest are payable on September 1, 2017. How will the note payable and the related ...

s a legal document that specifies the face value, the annual interest rate, the maturity date, and other characteristics of the bond issue. - ANSWER bond certificate is a document (contract) that defines the rights of the bondholders. - ANSWER bond indenture are secured by a lien against specific assets - ANSWER mortgage bonds