Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following most accurately describes what a bond is?

A document that records the details of a company's inventory transactions.

A certificate representing ownership in a corporation and a claim on part of its assets and earnings.

A short-term financial instrument used to manage daily cash flows.

A long-term debt instrument issued by a corporation or government to raise capital, representing a promise to pay back the principal with interest.

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Verified step by step guidance

Step 1: Understand the concept of a bond. A bond is a financial instrument that represents a loan made by an investor to a borrower, typically a corporation or government. It is used to raise capital and comes with a promise to repay the principal amount along with periodic interest payments.

Step 2: Analyze the options provided in the question. Each option describes a different financial concept, and you need to identify which one aligns with the definition of a bond.

Step 3: Eliminate incorrect options. For example, a document recording inventory transactions is related to inventory management, not bonds. Similarly, a certificate representing ownership in a corporation refers to stocks, not bonds. A short-term financial instrument for managing daily cash flows is typically a money market instrument, not a bond.

Step 4: Focus on the correct option. A bond is accurately described as a long-term debt instrument issued by a corporation or government to raise capital, with a promise to pay back the principal and interest.

Step 5: Confirm your understanding by reviewing the characteristics of bonds, such as their long-term nature, interest payments, and role in raising capital for entities like corporations and governments.