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Chapter 10: Reporting and Analyzing Liabilities – Study Notes

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Types of Liabilities

Notes Payable

Current Portion of Long Term Debt

Contingent Liabilities

Introduction to Bonds and Bond Characteristics

Face Value Bonds

Discount on Bonds

Premium on Bonds

Straight Line Amortization of Bond Premium or Discount

Effective Interest Amortization of Bond Premium or Discount

Redeeming Bonds before Maturity

Ratios: Times Interest Earned (TIE)

GAAP vs. IFRS: Liabilities