MGMT 1B Lecture Notes - Lecture 5: Retained Earnings, Earnings Before Interest, Taxes, Depreciation, And Amortization, Debenture
Document Summary
If the error occurs in a year that is presented, present corrected nancial statement(s). If the error occurs in a prior year to those presented, adjust beginning. Retained earnings of the earliest period presented, shown net of tax. Change in accounting estimate: examples, bad debts, warranties, useful life, salvage value, accounting- current and prospective approach, your instructor says, accounting estimates are not errors. Ebitdar- earnings before interest and tax and depreciation and amortization and. Bonds: giant note payables that can be bought/sold, bonds = debt, stock = equity: characteristics, secured: the debt is guaranteed by speci c assets, debenture: a bond that is unsecured. It is issued on the credit rating of the corporation: coupon (bearer): coupons are attached at the bottom of the bond. Every six months, the owner detaches the coupon, and deposits it with their bank to receive interest: registered: the issuer of the bond keeps track of everyone that owns the bond.
