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

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

Financial Accounting

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

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Multiple Choice

Which of the following information is typically shown in a bond amortization schedule?

The number of shares issued by the company

The annual dividend paid to shareholders

The carrying value of the bond after each interest period

The market price of the bond at issuance

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Verified step by step guidance

Understand the purpose of a bond amortization schedule: It is used to track the carrying value of a bond over time as interest is accrued and payments are made.

Identify the key components of a bond amortization schedule: These typically include the interest expense, the cash payment, the amortization of the bond discount or premium, and the carrying value of the bond after each interest period.

Clarify why the carrying value of the bond is included: The carrying value represents the book value of the bond on the company's financial statements, which changes as the bond discount or premium is amortized over time.

Eliminate irrelevant options: The number of shares issued by the company and the annual dividend paid to shareholders are related to equity, not bonds. Similarly, the market price of the bond at issuance is not tracked in the amortization schedule, as it focuses on accounting values rather than market values.

Conclude that the carrying value of the bond after each interest period is the correct answer, as it is a fundamental part of the bond amortization schedule.