1.Bond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation.
2.Financial leverage refers to the practice of borrowing at one rate and investing at another.
3.Neither corporate bond interest nor dividends is deductible for income tax purposes.
4.Secured bonds are issued against the general credit of the borrower.
5.The corporation issuing the bonds does not journalize transactions between the bondholder and other investors.
6.If bonds are issued at a discount, the issuing corporation will repay an amount less than the face amount of the bonds on the maturity date.
7.If $ 180,000, 9%, bonds are issued on January 1, and pay interest semi-annually, the amount of interest paid on July 1, will be $ 8,100.
8.The debt to total assets ratio measures the degree to which a company’s assets are financed internally.
9.Instalment notes with blended principal and interest payments apply a fixed amount to the principal balance of the note with each payment.
10.A long-term note that pledges title to specific property as security for a loan is known as a mortgage payable.
Let me know with Section or Rule in Income Tax.
(The text appears in a problem on bank reconciliation) Terminology in bank financial statements sometimes differs slightly from that in statements of industrial companies.
Explain what is meant by “reserve for loan/lease losses” , “provision charged to operations” and “loans/leases charged off” in the footnote.
Information related to mutual fund accounting.
I need to create groups of accounts for a company in Tally or other accounting software. I have 2 merchant accounts with different credit card companies. One of them credits my account in their bank and only sends me a statement of amount and commissions – other sends me a cheque after deducting the commissions. – How do I account for such accounts while making entries in to accounting software? Thanks for your time and help.
I appreciate your answer Mr. Soni. My question was for a merchant account where customers pay me using their credit cards and then I receive the amount from credit card company. One directly credits my account with them while the other sends me a cheque. How do I open these accounts – under which group? Thanks again for your time.