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 is an advantage of issuing bonds for a corporation?

Interest expense on bonds is tax-deductible.

Bonds do not require repayment of principal.

Bondholders have voting rights in the company.

Issuing bonds increases ownership dilution.

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Verified step by step guidance

Understand the concept of bonds: Bonds are a form of debt financing where a corporation borrows money from investors and agrees to pay back the principal amount along with periodic interest payments.

Analyze the tax implications: Interest expense on bonds is considered a cost of borrowing and is tax-deductible, meaning it reduces the corporation's taxable income, which is an advantage for the company.

Evaluate repayment obligations: Bonds require repayment of the principal amount at maturity, which is a liability for the corporation. This statement is incorrect as an advantage.

Consider voting rights: Bondholders do not have voting rights in the company, unlike shareholders. This is not an advantage of issuing bonds.

Assess ownership dilution: Issuing bonds does not dilute ownership because bondholders are creditors, not owners. This is an advantage compared to issuing equity, which would dilute ownership.