When a Corporation Issues a Bond

question 34

Multiple Choice

When a corporation issues a bond

• A)the purchaser of the bond assumes ownership rights in the corporation.
• B)it is making a promise to pay interest each year and to repay the principal at a stated time in the future.
• C)it is called equity capital.
• D)it is called financing through the stock market.
• E)it is making a promise to pay interest each year but not repay the principal.

Identify the correct way to record purchases and expenses, whether paid by cash or on account.

Comprehend the nature of asset, liability, capital, revenue, and expense accounts including their normal balances.

Record owner's withdrawals and investments in the business.

Calculate the ending balance of cash and other accounts based on given transactions.

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Definitions:

Navigation Bar

A component of a graphical user interface used for moving through the various parts and features of a software application or website by providing quick access links.

Customers List

A record or database containing the details and transaction history of a business's customers.

New Customer

A term used to refer to an individual or entity that has recently started doing business with a company.

Accounts Receivable

Accounts receivable is the money owed to a company by its customers or clients for goods or services that have been delivered but not yet paid for.