tailieunhanh - Lecture Financial accounting (3/e): Chapter 9 - Spiceland, Thomas, Herrmann

Chapter 9 - Long-term liabilities. In the previous chapter, we discussed current liabilities. In this chapter we focus on long-term liabilities, primarily bonds. Parts A, B, and C deal with various aspects of bonds. Part D discusses other important long-term liabilities such as installment notes and leases. | Long-Term Liabilities Chapter 9 In the previous chapter, we discussed current liabilities. In this chapter we focus on long-term liabilities, primarily bonds. Parts A, B, and C deal with various aspects of bonds. Part D discusses other important long-term liabilities such as installment notes and leases. 1 Learning Objectives Explain financing alternatives Identify the characteristics of bonds Determine the price of a bond issue Account for the issuance of bonds Record the retirement of bonds Identify other major long-term liabilities Make financial decisions using long-term liability ratios 2 Part A Overview of Long-Term Debt In this section, we will look at the various financing alternatives and the characteristics of bonds. 3 Learning Objective 1 Explain financing alternatives 9-4 4 Financing Alternatives Capital structure: mixture of liabilities and stockholders’ equity a business uses Debt financing: borrowing money Equity financing: obtaining additional investment from stockholders Some of the financing needed to fund a company’s growth can come from the profits generated by operations. Frequently, though, companies must find additional external financing to meet their needs for cash. Let’s look back at the basic accounting equation: Assets = Liabilities + Stockholders’ equity. Financing options available for a growing company include: Debt Financing: borrowing money (liabilities) Equity Financing: obtaining additional investment from stockholders (stockholders’ equity) Capital Structure is the mixture of liabilities and stockholders’ equity used by a business. Companies choose to borrow money rather than issue additional stock in the company because interest expense incurred when borrowing money is tax-deductible, whereas dividends paid to stockholders are not tax-deductible. Companies have three primary sources of long-term debt financing: bonds, notes, and leases. Bonds are the most common form of corporate debt. 5 Learning Objective 2 Identify the . | Long-Term Liabilities Chapter 9 In the previous chapter, we discussed current liabilities. In this chapter we focus on long-term liabilities, primarily bonds. Parts A, B, and C deal with various aspects of bonds. Part D discusses other important long-term liabilities such as installment notes and leases. 1 Learning Objectives Explain financing alternatives Identify the characteristics of bonds Determine the price of a bond issue Account for the issuance of bonds Record the retirement of bonds Identify other major long-term liabilities Make financial decisions using long-term liability ratios 2 Part A Overview of Long-Term Debt In this section, we will look at the various financing alternatives and the characteristics of bonds. 3 Learning Objective 1 Explain financing alternatives 9-4 4 Financing Alternatives Capital structure: mixture of liabilities and stockholders’ equity a business uses Debt financing: borrowing money Equity financing: obtaining additional investment from .