Please describe each of the following in your own words. Do not COPY and PASTE f
ID: 2380415 • Letter: P
Question
Please describe each of the following in your own words. Do not COPY and PASTE from online sources.
a)
Short-term debt
b)
Current maturities of long-term debt
c)
Accounts payable
d)
Unearned revenue
e)
Bond discount
f)
Bond premium
g)
Deferred tax liabilities
h)
Pension plan obligations
a)
Short-term debt
b)
Current maturities of long-term debt
c)
Accounts payable
d)
Unearned revenue
e)
Bond discount
f)
Bond premium
g)
Deferred tax liabilities
h)
Pension plan obligations
Explanation / Answer
1. Short term debit- Money borrow for few days or short duration
2. Current maturities of long-term debt- money required from the long term creditor
3. Account payable- Account payable is our creditor to whom we have to pay money
4. Unearned revenue- payment recieved before good sold and service delivered
5.Bond discount- The amount by which the market price of a bond is lower than its principal amount due at maturity.
issue at less than Face value or market price
6. Bond preium- The amount received for the bond that is in excess of the bond's face amount.
issue at more than face value.
7. Deferred tax liabilities- Tax paid in advance for future income.
8.Pension plan obligations- money contributes todays in installment (sum percentage of salary) for the better future after retirement