Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
CHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2n amount equal to the present value of the future contractual cash flows by applying the appropriate discount rale.2Understand the effective interest method, and apply it to debt amortization.3Understand the application of lf»e fair value option to financial liabilities.4Develop an ability to distin Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2guish between capital or finance leases and operating leases based on their economic characteristics, accounting criteria, and financial statement effEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
ects.5Develop die skills to account for capital or finance leases and opera Ung leases.LEARNINGOBJECTIVESChapter X indicated that firms typically finaCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2Firms use the cash received from customers within the next several months to repay short-term lenders and suppliers. Firms typically finance long-term assets, particularly property. plant, and equipment, with long-term borrowing or funds provided directly or indirectly by shareholders, This chapter Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2discusses the accounting for long-term borrowing arrangements (that is. those requiring repayment later than one year from the dale of the balance sheEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
et).The more long-term debt in <1 firm's capital structure, the greater the risk that the firm will experience difficulty making the required paymentsCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2elated to long term borrowing. One financial ratio is the long-term debt ratio. This ratio relates the amount of long-term debt to the amount of total financing.Long-term _Long-term DebtDebt Ratio Liabilities + Shareholders' EquityThe debt-equity ratio relates long-term debt to shareholders' equity. Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 21 indicating the relative mix of long-term financing obtained from lenders versus owners.Debt-Equity _ Long-Term DebtRatio Shareholders' Equity‘In claEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
ssic usage, the word equity refers to any Item on tlx right-hand side of the balance sheet any source of lunding lor a firm. Modern business usage hasCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2rse that wu should understand the meaning others have in mind when they use it.461462Chapter 10 Notes. Bonds, and LeasesEXHIBIT 10.1Debt Ratios for Four FirmsFirmLong-Term Debt RatioDebt-Equity RatioProperty. Plant, and EquipmenựToUl Audilokyo Electric.... 43.4%193.$%0.815Boise Cascade....0.4490.591 Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 20.541WPP Croup0.0830.2410.028Intel 0.038$.0%0.364Exhibit 10.1 presents these two debt ratios, as well as the ratio of property, plant, and equipment tEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
o total assets, for four firms in different industries We use these ratios to assess the relations among a firms industry economic characteristics; itCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2ric services in Japan. Properly. plant, and equipment dominate the asset side of the balance sheet. It relics more on long-term debt than shareholders' equity to finance these facilities (as a debt-equity ratio exceeding 100% indicates). 1 he regulated monopoly status practically eliminates the risk Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2 of default or bankruptcy, so Tokyo Electric faces a relatively low borrowing cost. Ils production and transmission facilities also serve as collateraEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
l for the debt, meaning that lenders can sell the facilities and use the cash proceeds to repay the debt in the event Tokyo Electric docs not do so.BoCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2nd largest ratio of property, plant, and equipment to total assets and the second largest debt-equity ratio of the tour firms Boise Cascade carries higher levels of risk than Tokyo Electric, First. Boise Cascade does not have the regulated, monopoly status of Tokyo Electric. Thus, market forces and Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2not regulation set the prices for its products. Second, the Sides of Boise Cascade are more sensitive to changes in the level of business activity thaEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
n those of Tokyo Electric. Third. Boise Cascade lias fewer assets to sen e as collateral for borrowing. rhe higher risk of Boise Cascade raises its boCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2rovide advertising, market research, public relations, and other services worldwide. Other than relatively small amounts of equipment, it owns virtually no property, plant, and equipment (it leases most of its office space). Of the four firms considered in this example, it exhibits the lowest fixed Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2asset intensity and the second lowest debt-equity ratio. WPP Group creates value from cmploy CCS- services, not from operating assets, so there is neiEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
ther the need nor the ability to borrow long-term using properly, plant, and equipment as collateral.Intel Intel is a United Stales-based designer andCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2roperty, plant, and equipment results from depreciating its technologyintensive manufacturing facilities over periods as short as four years. Intel has the smallest long-term debt and debt-equity ratios of the four firms in this example. T here are al least two reasons for this relatively low relian Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2ce on debt financing. First. Intel is exceptionally profitable and therefore generates funds from operations. Second, Intel incurs substantial technolEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
ogy risk from product obsolescence, with product life cycles of less than two years. Heavy reliance on debt financing would add financing risk and theCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in an Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2yzing long-term debt and assessing risk. This chapter discusses the recognition and measurement of long-term debt. Which obligations of a firm do U.S. GAAP and IFRS recognize as long-term debt? How do U.S. GAAP and IFRS measure the amount that firms report as debt on the balance sheet? With a few ex Ebook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2ceptions, the accounting for debthttps://khothuvien.cori!Overview of Long-Term Debt Marketsunder U.S. GAAP and H RS is similar. Wc consider notes, bonEbook Financial accounting - An introduction to concepts, methods, and uses (13/E): Part 2
ds, and leases in this chapter. The next section discusses notes and bonds. A later section discusses leases.OVERVIEW OF LONG-TERM DEBT MARKETS463CHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in anCHAPTERNotes, Bonds, and Leases1Develop the skills to compute ứ)e issue price, carrying value, and current fair value of notes and bunds payable in anGọi ngay
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