Chapter 4

Digging for Debt in the Balance Sheet’s Liabilities Section

In This Chapter

arrow Discovering how a company raises cash

arrow Identifying current liabilities

arrow Finding out about long-term debt

arrow Knowing when loss contingencies are reportable

arrow Accounting for bonds

Nobody likes debt, but it's often an inevitable part of a company keeping its doors open for business. This chapter covers both current and long-term debt, collectively known as liabilities. You discover the types of current liabilities that help a business manage its day-to-day operations. You also find out about long-term debt obligations that businesses use to acquire assets. This chapter discusses basic long-term debt — such as mortgages and notes payable — and bonds, focusing on the many facets of this complicated topic. A third type of liability — loss contingencies — also gets some space in this chapter. These liabilities aren't always included in financial accounting reports; you get the lowdown on when and how to include ...

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