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Is amortization of discount on investment in bonds added or subtracted in converting net income to the net cash flow?
Wiki User
∙ 10y ago
Amortization of discount is added back to net income as there is no actual cash outflow due to amortization and that's why it is added back to cash flow from operating activities.
Wiki User
∙ 10y ago
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When effective interest method is used to amortize bond premium or discount the periodic amortization will be?
increasse if the bonds were issued at either a discount or premium.
Is the straight-line amortization or effective interest rate method better?
This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)
Is the Sales discount account a debit or credit?
Sales discount is subtracted from gross sales in arriving at net sales. It is a contra revenue account, so it is ALWAYS debit.
Journal Entry for callable bond?
Check out www.bondterrier.com which is an interactive learning tool dealing with Accounting for the Life-Cycle Events of Bond Liabilities that are (a) Convertible into Common Equity at the Holder's Option and (b) Callable at the Issuer's Option. Journal entries are provided for Issuance; Interest Payments; Discount/Premium Amortization; Conversion; Call; Maturity.
What is the difference between discount allowed and discount received?
discount allowed means the discount which is given by a seller to the buyer. and discount received means the discount received by the seller for purchases made
Price paid after the discount is subtracted is called?
Price paid after the discount is subtracted is called the discount price. This is also commonly referred to as the net price.
What is the price paid after discount is subtracted?
Tax
Amount of money subtracted from sales price?
discount
An amount subtracted from the regular price is called what?
A discount.
What is a price paid after the discount is subtracted?
Tax
What is it when Price paid after the discount was subtracted?
Total after rebate.
What a amount of money subtracted from the sales price?
That would probably be the discount.
Amount of money subtracted from the sales price?
dicount
What is money subtracted from the sale price?
Also known as a discount.
An amount of money subtracted from the sales price?
Called a "discount".
When effective interest method is used to amortize bond premium or discount the periodic amortization will be?
increasse if the bonds were issued at either a discount or premium.
What do you call Amount of money subtracted from the sales price?
Rebate or discount.Rebate or discount.Rebate or discount.Rebate or discount.
