Long Term Debt Flashcards
1
Q
What type of bonds mature in installments?
A
Serial bonds
2
Q
What are debenture bonds?
A
Debenture bonds are unsecured bonds
3
Q
What is the interest expense of a non-interest bearing note?
A
Interest expense equals the carrying amount of the note multiplied by the imputed interst rate for similar loans.
Interest expense increases the note’s carrying value to the face amount of the note.
