Discussion Questions: Chapter 13 & 14 : Intermediate Accounting
Please answer each question individually in at least 120 words per.
- Why is unearned revenue a liability and not asset?
- Why is it important to classify a portion of long-term debt on a yearly basis as a current liability?
- What are the criteria for recording contingencies?
- How do you value bonds? What factors can affect that value?
- What are the two methods for recording amortization of bond premiums and discounts? Which is best? Why?