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2 years ago

How are bonds payable usually classified on the balance sheet?

Business

1 answer:

earnstyle [38]2 years ago

7 0

Bonds payable that are long-term obligations are typically recorded on the balance sheet.

<h3>How do long-term liabilities work?</h3>

Long-term liabilities are debts owed by a business that won't be paid off for at least a year. To give a clearer picture of a company's present liquidity and its capacity to meet its obligations as they come due, the current part of long-term debt is broken out separately from other debt.

Long-term liabilities are also referred to as noncurrent liabilities or long-term debt. The balance sheet's part that may include debentures, loans, deferred tax liabilities, and pension obligations is where long-term liabilities are stated following more immediate liabilities.

Liabilities that are greater than one year in duration or that are not due within the next 12 months are referred to as long-term liabilities. The time it takes a business to convert its inventory into cash is known as its operational cycle.

Learn more about long-term liabilities with the help of the given link:

brainly.com/question/17283456

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Answer:

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Explanation:

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3 years ago

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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION Income

Zepler [3.9K]

Answer:

Aftertax income 47,278.7

Explanation:

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3 years ago

Which of the following is true of a partnership?

Readme [11.4K]

Answer: Option (B)

Explanation:

A partnership is referred to as or known as an arrangement where organizations, parties, business partners, tend to agree to cooperate with each other in order to advance the mutual interests they have. These partners that are in partnership may tend to be businesses, individuals, organizations, governments. Organizations tend to partner in order to increase their likelihood of achieving the mission and also amplify reach.

4 0

3 years ago

Village Bank has $310 million worth of assets with a duration of 12 years and liabilities worth $248 million with a duration of

vitfil [10]

Answer:

2129 futures contracts to be sold

Explanation:

Asset worth = $310 million

Asset duration = 12 years

liabilities = $248 million

Liabilities duration = 5 years

T-bond futures contracts = 104-20 (30nds)

% of assets = 310 / 248 =

Determine how many futures contracts Village Bank will sell to fully hedge the balance

Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]

= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]

= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]

= - [ 310 * 5.75 / 837.3336 ]

= - 2.12878 * 1000

= 2128.78 ≈ 2129 ( number of futures contracts to be sold )

5 0

3 years ago