financial accounting discussion questions 4

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*** No Min Word Count- Does not need to be in APA Format***

DQ 1 – Current Liabilities

  1. Why is unearned revenue considered a liability? When and how is the unearned revenue recognized in the financial statements?
  2. How would you describe the accounting procedures for notes payable and accounts payable? Compare and contrast.

DQ 2 – Long-Term Liabilities

About Long-term Liabilities:

  1. Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Why? What is the determining factor of whether a bond is sold at a discount, face, or premium?
  2. What is the straight-line method of amortizing discount and premium on bonds payable? Provide an explanation of the process.

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