Question

1. Definition of a category classified balance sheet
2. Disadvantage using bonds for long term financing
3. What do we have to do to generate goodwill
4. Definition of intangible assets
5. Life of patent
6. How do we handle sales taxes from a retailers standpoint
7. Long term debt
8. Describe a situation about a bond (callable, convertible, Deventer bonds)
9. Interest rate when you buy a bond what does it mean(how do we state an interest rate what do we always state it in)
10. Told bonds have a face value at a certain amount but sold at a different amount (1000 bond but bought it for 980 or 1010 how do you calculate it)

Answer as many questions as you can please

Answer 1

Answer-1- Definition of a category classified balance sheet:-

The balance sheet reveals the assets, liabilities, and equity of a company.To facilitate proper analysis, accountants will often divide the balance sheet into categories or classifications. The result is that important groups of accounts can be identified and subtotaled. Such balance sheets are called “classified balance sheets.A classified balance sheet is a financial document that not only sub-categories the assets, liabilities and shareholder equity but also presents meaningful classification within these broad categories.

2-Disadvantage using bonds for long term financing:-

  The disadvantages of bonds include rising interest rates and credit risk, prepayment risk,reinvestment risk, and liquidity risk.Fixed rate bonds are subject to interest rate risk, meaning that their market prices will decrease in value when the generally prevailing interest rates rise.Some bonds are callable. This creates reinvestment risk, meaning the investor is forced to find a new place for his money. As a consequence, the investor might not be able to find as good a deal, especially because this usually happens when interest rates are falling.A company’s bondholders may lose much or all their money if the company goes bankrupt. There is no guarantee of how much money will remain to repay bondholders.

3-What do we have to do to generate goodwill:-

  The goodwill of a company increases its value, as qualities such as the company's customer base, its brands, products,The three factors in the creation of a company's goodwill include its going concern value, excess business income and the expectation of future economic benefits.

4-Intangible Assets:-

An intangible asset is one who has not physical existence.We can't seen and touch these assets. Intangible assets are long term assets, means we can use them more than one accounting year.Examples are patents, copyright, franchises, goodwill, trademarks, and trade names.

5-Life of Patent:-

The life of a patent is no longer than 20 years from the date that the patent application was filed, and no shorter than 17 years from issuance. ... The patent office is obligated to review your patent application within 14 months of the filing date.