Par Value Is the Value of a Bond at Its

question 7

True/False

Par value is the value of a bond at its maturity; what the issuer promises to pay the bondholder when the bond matures.

---

Definitions:

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Current Operating Liabilities

Short-term liabilities that are incurred as part of the normal operations of a business, due within a fiscal year.

Decreases

A reduction in quantity, size, or overall value of an asset, revenue, or other financial metric.

Decreases in Current Assets

The reduction in the value or amount of the assets that a company expects to convert into cash within one year.