Extinguishment of debt meaning refers to the process of eliminating a financial liability from a company’s balance sheet, typically through repayment, conversion, or cancellation. This accounting event occurs when a debtor fulfills their obligation, resulting in the derecognition of the debt. The extinguishment of debt can impact a company’s financial statements, affecting both liabilities and equity.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
