对外经济贸易大学会计学专业英语课件.pptVIP

The Nature of Liabilities Distinction BetweenDebt and Equity The acquisition of assets is financed from two sources: Liabilities – Question Evaluating Liquidity Liabilities – Question Accounts Payable(应付账款) Notes Payable Notes Payable Notes Payable Notes Payable Interest Payable Interest expense is the compensation to the lender for giving up the use of money for a period of time. The liability is called interest payable. To the lender, interest is a revenue. To the borrower, interest is an expense. Interest Payable Interest Payable – Example Payroll Liabilities Unearned Revenue Long-Term Debt Long-Term Debt Installment Notes Payable Allocating Installment Payments Between Interest and Principal Identify the unpaid principal balance. Unpaid Principal × Interest rate = Interest expense. Installment payment - Interest expense = Reduction in unpaid principal balance. Compute new unpaid principal balance. Allocating Installment Payments Between Interest and Principal Allocating Installment Payments Between Interest and Principal Allocating Installment Payments Between Interest and Principal Allocating Installment Payments Between Interest and Principal Exercise 10.7 (p.454, to be done in class) Bonds Payable 应付债券 Bonds usually involve the borrowing of a large sum of money, called principal. The principal is usually paid back as a lump sum at the end of the bond period. Individual bonds are often denominated with a par value（票面值）, or face value（面值）, of $1,000. Bonds Payable Bonds usually carry a stated rate of interest, also called a contract rate （约定利率）or coupon rate (票面利率）. Interest is normally paid semiannually. Interest is computed as: Bonds Payable Bonds are issued through an intermediary called an underwriter（包销商/承销商）. Bonds can be sold on organized securities exchanges. Bond prices are usually quoted as a percentage of the face amount. For example, a $1,000 bond priced at 102 would sell for $1,020. Types of Bonds Tax Advantage of Bond Financing Refer to textbook