Module 10

Liabilities

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10.0 A Brief Look Inside Liabilities

A sneak peak into going into debt.

10.1 Overview of Key Issues and Terminology of Liabilities

Borrow and Interest as a cost of Using another’s cash forms the foundation for the full range of terminology.

10.2 Current Liabilities

A one page example in the Practical T format is everything that you need to know about current liabilities.

10.3 Notes Payable

Borrowing from a single creditor and computing amortization and interest for single and multiple payment loans. Practice at the end.

10.4 Issuing Bonds Payable

Borrowing from the public in the bond market. Learn how interest rates and features influence the issue price, premiums and discounts.

10.5 Bonds Amortization - Straight Line

Build on Notes with a clear example comparing premium and discount with the CIA method. Practice at the end.

10.6 Bond Amortization - Effective Interest

Build on Straight Line with a clear example of what is the same and what is different by comparing premium and discount with the CIA method. Practice at the end.

10.7 Reporting Liabilities, Liquidity and Solvency Ratios

Liquidity and Solvency ratios are particularly important to creditors evaluating risk. Learn how to compute them and what they mean by comparing Struggling, Inc. with Flush, Inc.

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