Non-Current Liabilities Such as Bonds Payable and Instalment Notes Payable

question 79

True/False

Non-current liabilities such as bonds payable and instalment notes payable are financial liabilities because there is a contract between two or more parties to pay cash in the future.

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Definitions:

Trade Receivables

Amounts owed to a business by its customers as a result of the sale of goods or services on credit.

Exchange Notes

Financial instruments or agreements between parties to swap different forms of financial assets, liabilities, or payments agreed upon conditions and terms.

Receivable

An amount of money owed to a business by its customers or clients for goods or services delivered or used but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account that reduces accounts receivable to its net realizable value, representing estimated uncollectible amounts.