Skip to Main Content
Accounting All-in-One For Dummies, with Online Practice, 2nd Edition
book

Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

by Joseph Kraynak
April 2018
Beginner content levelBeginner
768 pages
20h 9m
English
For Dummies
Content preview from Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 6

Planning for Long-Term Obligations

IN THIS CHAPTER

check Discovering how a company raises cash

check Identifying long-term liabilities

check Accounting for notes payable

check Reporting gain or loss on debt extinguishment

check Considering bonds

If you own a car or house you financed, you’re probably all too familiar with long-term debt: loans that won’t be paid off by the end of the next 12-month period. Well, companies have long-term debt, too. A company usually uses current debt as a vehicle to meet short-term obligations like payroll and incurs long-term debt to finance company assets.

This chapter gives you the lowdown on two types of long-term debt: notes and bonds payable. Notes payable are debt a company takes on typically through lending institutions, such as banks, to finance asset purchases. Asset purchases include cars, equipment, and buildings. Hospital and municipalities issue bonds payable (although corporations can issue them too). Here you find out all you need to know about this complicated ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Accounting All-in-One For Dummies

Accounting All-in-One For Dummies

Ken Boyd, Lita Epstein, Mark P. Holtzman, Frimette Kass-shraibman, Maire Loughran, Vijay S. Sampath, John A. Tracy, Tage C. Tracy, Jill Gilbert Welytok

Publisher Resources

ISBN: 9781119453895Purchase book