ACTG 2011 Chapter Notes - Chapter 8: Effective Interest Rate, Nominal Interest Rate, Premium Bond

• School: York University
• Department: Accounting
• Course: ACTG 2011
• Professor: Alla Volodina

Document Summary

Liabilities obligations to provide cash, goods or services to customers, suppliers, employees and anyone else an entity owes something to . Ifrs criteria: require sacrifice of resources, unavoidable, result of past transaction or economic events. Current liabilities: obligations that will be satisfied in one year or one operating cycle. Accrued liability interest payments: when an entity incurs an expense with no external event. Long term liabilities: obligations that will not be satisfied in one year or one operating cycle. Bonds: a formal agreement where the borrower agrees to make periodic interest payments to lenders as well as repay the principal at a specific time. Notes payable: a formal obligation to repay the principal amount. Debenture: a bond with no collateral provided to lenders: collateral: protection for the lenders should the borrower not repay the loan. Mortgage: a loan that provides the borrowers" property as collateral. Variable rate loan: interest rate varies with market conditions.