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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The carrying value of bonds at maturity always equals:

the market value of the bonds at maturity

the face (par) value of the bonds

the sum of all interest payments made

the original issue price of the bonds

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Verified step by step guidance

Understand the concept of bond maturity: Bonds are debt instruments issued by entities to raise funds, and they have a fixed maturity date when the principal amount (face value) is repaid to the bondholder.

Recognize that the carrying value of bonds refers to the value recorded in the issuer's accounting books, which includes the face value adjusted for any unamortized premium or discount.

At maturity, all premiums or discounts on the bonds are fully amortized, meaning the carrying value equals the face (par) value of the bonds.

Clarify why the carrying value does not equal the market value at maturity: The market value fluctuates based on interest rates and other factors, but the carrying value is strictly the face value at maturity.

Reinforce that the carrying value at maturity also does not include the sum of interest payments or the original issue price, as these are separate components of bond accounting.