Your Friend Has Just Purchased One Hundred Shares of the Common

question 38

Essay

Your friend has just purchased one hundred shares of the common stock of the Ryan Corporation. Your friend notices that the company shows an amount of $5,000,000 labeled as bond payable in the balance sheet. You have just recently received your license as a CPA and your friend has come to you for advice. She begins by asking: "What are bonds payable and what should I know about them in terms of my investment in Ryan Corporation?"
Required:
How would you respond to the question posed by your friend?

---

Definitions:

Coriolis Effect

The apparent deflection of moving objects (such as airplanes, wind, and ocean currents) to the right in the northern hemisphere and to the left in the southern hemisphere, resulting from the Earth's rotation.

Northern Hemisphere

The half of Earth that lies north of the equator, containing the majority of the planet's landmasses.

Southern Hemisphere

Refers to the half of Earth that lies south of the equator, encompassing regions like Australia, Antarctica, most of South America, and southern Africa.

Flow Cells

Circulatory patterns in fluids (air, water) driven by thermal or density differences, contributing to global atmospheric and oceanic circulation.