One of the following verbs corresponds to this definition: "a financial process by which a debt is gradually extinguished by means of periodic payments that may be equal or different". A) Capitalize B) Amortize C) Accrue D) Depreciate

One of the following verbs corresponds to this definition: "a financial process by which a debt is gradually extinguished by means of periodic payments that may be equal or different". A) Capitalize B) Amortize C) Accrue D) Depreciate

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter11: Investor Losses

Section: Chapter Questions

Problem 26DQ

See similar textbooks

Related questions

Q: What evidence is necessary to demonstrate the ability to defer settlement of short-term debt?

A: Short-term debt: Short-term debt refers to the current liability of an organization. This means that…

Q: A receivable is an amount due from another party. O True O False

A: In this question, we are required to determine whether the given statement regarding receivables is…

Q: Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices…

A: No.ParticularsMeasurement of financial assets1Long-term loans that are held for collecting…

Q: the inflows and outflows method, the following are considered exceptional inflows: A) Interest…

A: Inflows and outflows method specifies the process of evaluating all the desired cash that comes into…

Q: Provide some examples of items that would be adjusted directly against equity, rather than…

A: There are certain items that are directly adjusted to equity rather than recognized in the profit…

Q: 36. Subsequent to their initial recognition, which financial assets with quoted market prices in an…

A: Financial assets can be reported in 2 ways: Financial assets at amortized costsFinancial assets at…

Q: Which item below is not a current liability? Select one: a. Unearned revenue b. Trade accounts…

A: Which item below is not a current liabilityExplainationCurrent Liabilties :- Current liabilities…

Q: Question 3. Classify each of the following accounts as (a) asset, (b) liability, or (c) equity.…

A: Assets means resources that the business have. It may be tangible resources or intangible resources.…

Q: 2. Why are investments shown as a current asset?

A: Financial Statement: They are annual reports of an organization summarising the financial…

Q: Want Both the Correct Answer

A: QUESTION 71 The direct write-off method is one of the approaches used in accounting to handle…

Q: Under what circumstances under PFRS 9 can an entity classify financial assets that meet the…

A: PFRS 9 includes 3 main components. (1) Requirements for recognition, Classification of Financial…

Question

10.-
One of the following verbs corresponds to this definition: "a financial process by which a debt is gradually extinguished by means of periodic payments that may be equal or different".

A) Capitalize

B) Amortize

C) Accrue

D) Depreciate

Wich?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1.-In finance, the expression "capitalize" is used to denote a financial process by which a debt is extinguished, gradually, by means of periodic payments that may be equal or different. true or false?
4.-In the amortization tables, the interest is calculated from the outstanding balance at the beginning of the capitalizable period. true or false?
6.-In the amortization of credits, the interest must be paid at the end of each period calculated on the balance of the capital owed (unpaid balance). true or false?
A) total debt - is that then the same as total liability? (just differently worded?)What is the difference between 'total' and 'current' in this context?
Show complete and correct solution
Juan Diego began the year with a tax basis in his partnership interest of $51,400. During the year, he was allocated $20,560 of partnership ordinary business income, $71,960 of $1231 losses, and $30,840 of short-term capital losses and received a cash distribution of $51,400. Note: Do not round intermediate calculations.
Gains or losses from the early extinguishment of debt that is refunded can theoretically be accounted for in three ways: 1. Amortized over the life of old debt 2. Amortized over the life of the new debt issue 3. Recognized in the period of extinguishment Required: A. Discuss the supporting arguments for each of the three theoretical methods of accounting for gains and losses from the early extinguishment of debt. B. Which of the three methods would provide a blance sheet measure that reflects the present value of the future cash flows discounted at the interest rate that is comensurate with the risk associated with the new debt issue? why? C. Which of the three methods is generally accepted and how should the appropriate amount of gain or loss be shown in a company's financial statements?
#34
Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes payable C. The answer does not exist d. Wages payable e. Interest payable Jump to...
Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…
Need solutions
1. compound interest is only the interest you earn on your principal amount. TRUE OR FALSE.