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Discuss the advantages and disadvantages in regards to financing with bonds.
You can benefit from bond financing programs because they offer a cost-effective way to finance real estate and equipment. Lower rates and flexible terms keep you competitive while providing a smart solution for the refinancing of debt. [ You also win by taking advantage of the opportunity to obtain tax-exempt bonds. Disadvantage of bonds is that they are only as good as the borrower's ability
to pay the loans back. If the issuers of the bonds cannot pay back what they agreed to, the bonds will default. It is also a disadvantage if bonds are repaid early in a bond mutual fund. ]
Expert answered|zaldy|Points 40|
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Asked 3/21/2012 5:25:12 PM
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What is contingent liability?
Weegy: Contingent liabilities are liabilities that may or may not be incurred by an entity depending on the outcome of a future event such as a court case. [ These liabilities are recorded in a company's accounts and shown in the balance sheet when both probable and reasonably estimable. A footnote to the balance sheet describes the nature and extent of the contingent liabilities. The likelihood of loss is described as probable, reasonably possible, or remote. The ability to estimate a loss is described as known, reasonably estimable, or not reasonably estimable. ] (More)
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Asked 3/14/2012 6:43:44 PM
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Explain current liabilities?
Weegy: Current liabilities is a balance sheet item which equals the sum of all money owed by a company and due within one year. also called payables or current debt. Read more: User: What is it important to distinguish between current and long-term liabilities? Weegy: Current liabilities are the obligations that are due within one year of the balance sheet’s date and will require cash payment or will need to be renewed. [ Knowing which liabilities will have to be paid within one year is important to lenders, financial analysts, owners, and executives of the company. (Current assets include cash and other assets that will turn to cash within one year. ] (More)
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Asked 3/14/2012 6:34:40 PM
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How are contingent liabilities accounted for verses contingent assets?
Weegy: Contingent liabilities A contingent liability is: (a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the [ control of the entity; or (b) a present obligation that arises from past events but is not recognised because: (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability. An entity should not recognise a contingent liability. An entity should disclose a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. An entity shall not recognise a contingent asset. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. ] (More)
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Asked 3/14/2012 6:46:51 PM
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Should contingent liabilities be accounted for if we aren’t certain of the amount? Explain your answer.
Weegy: Due to the uncertainty of the future events, these assets are not placed on the balance sheet. However, they can be found in the company's financial statement notes. Read more: (More)
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Asked 3/14/2012 7:07:24 PM
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Should contingent liabilities be accounted for if we aren’t certain of the amount? Explain your answer.
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Updated 3/14/2012 7:35:13 PM
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In accounting, a contingent liability and the related contingent loss are recorded with a journal entry only if the contingency is both probable and the amount can be estimated.

If a contingent liability is only possible (not probable), or if the amount cannot be estimated, a journal entry is not required. However, a disclosure is required.

When a contingent liability is remote (such as a nuisance suit), then neither a journal nor a disclosure is required.

Added 3/14/2012 7:35:13 PM
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