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A Bond Represents a Contract of Indebtedness Issued by a Corporation

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A bond represents a contract of indebtedness issued by a corporation that promises payment of a principal amount plus interest at a specified future date.


Definitions:

Sales Tax Revenue

The income received by a government from the imposition of a tax on the sale of goods and services.

Sales Revenue

The earnings accumulated from the sale of products or services during a specific timeframe.

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.

Sales Tax Payable

A liability account that represents the sales tax collected from customers by a selling entity and owed to the tax authority.

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