25.1-25.4 Non-current Liabilities Flashcards
1
Q
In terms of maturity of debt securities:
Bond = …
Note = …
Bill = …
A
Bond = maturity of 10 years or longer
Note = maturity between 2 and 10 years
Bill = maturity is less than 2 years
2
Q
Two methods for amortising the premium or discount of bonds that were issued at a price other than par are:
A
The effective interest rate method
The straight-line method
3
Q
A lease that resembles a purchase is classified as a … lease. All other leases are … leases.
A
Finance lease
Operating leases
