(BQ) Part 2 book "Accounting" has contents: Investments and fair value accounting, investments and fair value accounting, managerial accounting concepts and principles, process cost systems, performance evaluation using variances from standard costs, performance evaluation for decentralized operations,.and other contents. | Chapter 14 ZUMA Press, Inc./Alamy Find more at Long-Term Liabilities: Bonds and Notes Dick’s Sporting Goods M ost of us don’t have enough money in our bank accounts to buy a house or a car by simply writing a check. Just imagine if you had to save the entire purchase price of a house before you could buy it! To help us make these types of urchases, banks will typically lend us the money, as long p as we agree to repay the loan with interest in smaller future payments. Loans such as this, or long-term debt, allow us to purchase assets such as houses and cars today, which benefit us over the long term. The use of debt can also help a business reach its objectives. Most businesses have to borrow money in order to acquire assets that they will use to generate income. For example, in 1948 Dick Stack borrowed $300 from his grandmother to start a sporting goods store in Binghamton, New York. Over the years the business grew, and in the early 1990s, Dick’s Sporting Goods used long-term debt to transform itself from a small business to a Fortune 500 company with over 450 stores across the United States. While debt can help companies like Dick’s Sporting Goods grow to achieve financial success, too much debt can be a financial burden that may even lead to bankruptcy. Just like individuals, businesses must manage debt wisely. In this chapter, we will discuss the nature of, accounting for, analysis of, and investments in long-term debt. Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Find more at Learning .
