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Crash Course in Accounting and Financial Statement Analysis, Second Edition
book

Crash Course in Accounting and Financial Statement Analysis, Second Edition

by Matan Feldman, Arkady Libman
February 2007
Intermediate to advanced
288 pages
6h 32m
English
Wiley
Content preview from Crash Course in Accounting and Financial Statement Analysis, Second Edition

Long-Term Debt

Some long-term debt has higher priority than other debt over claims in the event of bankruptcy. Such debt is called senior debt, while debt with lower priority is called subordinated debt.

Debt generally has a number of restrictions (called covenants) that provide protection for both lenders and borrowers. These covenants appear in the indenture (debt agreement) and may include:

  • Interest rate and amount of the issued debt

  • Provisions for the repayment of debt

  • Restrictions on the amount and type of additional debt that can be issued

  • Dividend restrictions

  • Minimum level of operating performance that must be met over a certain period in order to meet debt covenants

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Publisher Resources

ISBN: 9780470047019Purchase book