Take Test Assessment A2A Requires Respondus Test information

Take Test: Assessment A-2[A]- Requires Respondus Test information etter A, o, G, J. Complete this A.2 assessment if your last name begins with the l The time allotted is: 120 minutes. The link will close on Friday, June 8, 2018 at 12:00 noon. Description instructions Timed Test This test has a time limit of 2 hours and 30 minutes This test vill save and submit automatic Multiple Attempts Not allowed This test can only be taken once. Force Completion Once started, this test must be completed in one sitting, Do not leave the test bef Wamings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Remaining Time: 2 hours. 12 minutes, 31 seconds. v Question Completion Status: QUESTION 1 INSTRUCTIONS: IN YOUR OWN WORDS, write a JHO ROUGH res ponse to ANY THREE of the questions below. Yo 1. (a) What are long-term labities? (b) Give three examples of longterm labilities that might appear on a a bond? (b) Describe the two major obligations incurred by a company when bonds are issued (a) What is 3. (a) What 4 State at least two (2) reasons that a corporation would invest in secunities? 5. A client t is a lease agreement? (b) What are the two most common types of leases, for accounting of your company is confused about losses and gains on the sale of stock investments Explain (o) how the gai investments 6 Classify investments based on (a) type, (b) balanc e sheet presentation and (c) management\'s intentions For the toolbar, press ALT F10 (PC) or ALT+FN+F 10 (Mac) T T T Anat 3(12pe) ? T,-. 1-.RA..e , liek Save qu

Solution

Answers;

1) Long term liabilities

Long term liablities are liabilities that are due beyond a year or accounting period of the comapany.

Eg:

2) Bonds

A bond is a instrument of indebtedness of the biond issuer to the holders. Bond is debr security, under which the issuer owes the holder of a debt is obliged to pay them interest or coupon rate or to pay principal at maturity date.

Principal:

Nominal, principal, par, face value is the amount on which ssuer pays interest, and which most commonly, hs to be repaid at the end of the term.

Coupon rate

Coupon rate is the interest rate that the issuer pays to holder. Usually it is fixed thruoghout the life of the bonb. Interst payment is at different frequencies, generally at semi-annually.

3) Lease Agreement:

A contarct between lessor and lessee that allows the lessee right to use asset of a property owned or managed by lessor a agrred period of time. The agreeement does not provide ownership to lessee; however the lessor may grant allowance to modify to suit the needs of lessee.

The following are the two types of leases;

2) Finance Lease:-