20 QUESTION 8 INSTRUCTIONS: IN YOUR OWN WORDS, write a THOROUGH, response to ANY FOUR of the questions below. You must write using COMPLETE SENTENCES. Be sure your answers are specific 20 points 1 (a) What are long-term abilities? (b) Give three examples of long-term labilities that might appear on a company's balance sheet 2 (a) What is a bond? (b) Describe the two major obligations incurred by a company when bonds are issued. 3. (a) What is a lease agreement? (b) What are the two most common types of leases, for accounting purposes? (c) Distinguish between the two types of leases 4. State at least two (2) reasons that a corporation would invest in securities? 5. A client of your company is confused about losses and gains on the sale of stock investments Explain (a) how the gains or losses are computed, and (b) the statement presentation of gains and losses on the sale of stock investments 6. Classily Investments based on (a) type. (b) balance sheet presentation and (c) management's intentions 3 (121) T- GiB TTTT Paragraph Arial %D09EESE