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Why debenture interest is expense but not within operating expense?
Wiki User
∙ 10y ago
Issuance of debendutres is not an operating activity that's why interest on debenture is also a non operating expense
Wiki User
∙ 10y ago
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What are the reasons for the creation of debenture redemption reserve fund?
Indian Companies Act of 1956 added during an amendment in the year 2000. It states Indian company that issues debentures must offer debenture redemption service to protect investors against the possibility of company default. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2 percent interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service.
Is a prepaid expense an operating asset?
Yes. the are counted as a non-financial asset.A prepaid expense is a considered an asset because it entitles the company to receive a benefit in the future. They are normally classified as a current assets because usually the benefits will be obtained within a year or a business cycle; whichever is longer.
When do you record warranty expense?
When its returned within the warranty period.
Where is warranty expense stated on the income statement?
There is no clear accounting guidance under US GAAP and as such it is considered to be a policy election that needs to be disclosed within the footnotes and applied consistently. Warranty expense can be included as part of Cost of Sales or Operating Expenses. If you review public company financials you will see a 50/50 split.
XYZ Corp sells its bonds at a premium and applies the effective interest method in amortizing the premium.Do you think the annual interest expense will increase or decrease over the life of the bonds?
It really depends on how much is the premium paid. Effectively if the premium paid is higher than the par value of the bonds issued, the annual interest expense would be relatively lower. Another perspective is that since that both the bonds and its premium uses effective interest method, considering all factors remain the same, the annual interest expense will remain unchanged. Premium of the bond should be captialized within the holders of the bonds and amortized over the years in which the manner best represents. Issuer of the bonds generally do not captialize the premium of the bond separately. You should also note that the bonds issued are not compound financial instruments or contain any embedded derivates.
What type of an account is a purchase?
contra-expense It's an expense, not a contra expense. If you don't pay the bill within the discount period, and you had recorded the original purchase at net (Purchase price less the early pay discount) then you have more expense, not less, when you don't pay on time.
What type of an account is a purchase discount?
contra-expense It's an expense, not a contra expense. If you don't pay the bill within the discount period, and you had recorded the original purchase at net (Purchase price less the early pay discount) then you have more expense, not less, when you don't pay on time.
Is it true an application run within an operating system?
Nope - the Operating System is a closed program. Applications run as independently as 'extensions' to the core Operating System.
Where can I find gifts for a woman's 40th birthday?
Well, flowers won't hurt. You can also find out what the person's interest is and get something that is within their interest and within your budget.
What is capable of processing all of the information within a computer?
Operating system
What is the collection of programs that manage and coordinate the activities taking place within a computer?
The collection of programs that manage and coordinate the activities that take place within a computer is called the Operating System.
Describe the condition of matter if there were no secondary forces operating between molecules?
Matter would be in an inert state if nothing is operating within it.
