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

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

Which of the following represents a method of long-term debt financing for a corporation?

Paying dividends

Retaining earnings

Issuing bonds

Selling common stock

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Understand the concept of long-term debt financing: Long-term debt financing refers to methods a corporation uses to raise funds that must be repaid over an extended period, typically more than one year. This often involves borrowing money or issuing debt instruments.

Analyze the options provided: Paying dividends and retaining earnings are not methods of financing. Paying dividends is a distribution of profits to shareholders, and retaining earnings involves keeping profits within the company rather than distributing them.

Evaluate the option of selling common stock: Selling common stock is a method of equity financing, not debt financing. Equity financing involves raising capital by selling ownership shares in the company.

Focus on issuing bonds: Issuing bonds is a method of long-term debt financing. Bonds are debt instruments that corporations issue to investors, promising to pay back the principal amount along with interest over a specified period.

Conclude that issuing bonds is the correct answer: Bonds represent a commitment to repay borrowed funds, making them a clear example of long-term debt financing for a corporation.