Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited. To explain: The long-term liabilities and its three examples.

Question

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Answer 1

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

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Answer 2

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

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Answer 3

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

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Answer 4

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

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Answer 5

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Answer 6

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

Answer 7

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

Answer 8

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

Answer 13

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Answer 14

(b)

To determine

To explain: The bonds.

Answer 15

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.