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?

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Definitions:

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.

Extreme Anxiety

A heightened state of unease or worry, often with severe physical and psychological symptoms.

Nightmares

Disturbing dreams that can cause a person to wake up feeling anxious, frightened, or in distress.

Unrealistically Optimistic

The tendency to hold excessively positive expectations for one's self despite evidence to the contrary.