会计英语（简明版） Lesson 8 Current and Long-term Liabilities.ppt

Financial Accounting 1 Lesson summary 6 * 2 2 Financial Accounting 1 Lesson summary 6 * 2 2 Financial Accounting 1 Lesson summary 6 * 2 2 Financial Accounting 1 Lesson summary 6 * 2 2 Financial Accounting 1 Lesson summary 6 * 5 73 Financial Accounting 1 Lesson summary 6 * Financial Accounting 1 Lesson summary 6 * Financial Accounting 1 Lesson summary 6 * Financial Accounting 1 Lesson summary 6 * Financial Accounting 1 Lesson summary 6 * YE SUN AccountingEnglish@2009 * Two types of cash flows are involved with bonds: Today Principal payment at maturity. Periodic interest payments called annuities. Maturity The Concept of Present Value YE SUN AccountingEnglish@2009 * The Present Value Concept and Bond Prices The selling price of the bond is determined by the market based on the time value of money. YE SUN AccountingEnglish@2009 * The Present Value Concept and Bond Prices The selling price of the bond is determined by the market based on the time value of money. = = Non-current liabilities YE SUN AccountingEnglish@2009 * Bonds Payable 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, or face value, of $1,000. YE SUN AccountingEnglish@2009 * YE SUN AccountingEnglish@2009 * Bonds Payable Bonds usually carry a stated rate of interest, also called a contract rate. Interest is normally paid semiannually. Interest is computed as: Interest = Principal × Stated Rate × Time YE SUN AccountingEnglish@2009 * Bonds Payable Bonds are issued through an intermediary called an underwriter. 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. YE SUN AccountingEnglish@2009 * Types of Bonds Mortgage Bonds Convertible Bonds Junk Bonds Debenture Bonds YE SUN Accou