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Chapter 9: Long-Term Liabilities – Bonds Payable, Amortization, and Financial Statement Impact

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Types of Liabilities

Notes Payable

Introduction to Bonds and Bond Characteristics

Face Value Bonds

Discount on Bonds

Premium on Bonds

Effective Interest Amortization of Bond Premium or Discount

Redeeming Bonds before Maturity

Ratios: Debt to Asset Ratio

Ratios: Times Interest Earned (TIE)