Multiple Choice
An independent audit adds value to the communication of financial information because the audit:
25
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following definitions best describes a serial bond?
A
A bond issue in which portions of the principal mature at regular intervals over a period of time.
B
A bond that matures in full on a single date in the future.
C
A bond that can be converted into shares of the issuing company's stock.
D
A bond that is secured by specific assets of the issuing company.
Verified step by step guidance1
Understand the concept of a serial bond: A serial bond is a type of bond where portions of the principal are scheduled to mature at regular intervals over a period of time, rather than all at once on a single maturity date.
Compare the definition of a serial bond with the other options provided in the question. For example, a bond that matures in full on a single date is known as a term bond, not a serial bond.
Evaluate the option describing a bond that can be converted into shares of the issuing company's stock. This is a convertible bond, which is different from a serial bond.
Consider the option describing a bond secured by specific assets of the issuing company. This is a secured bond, which is also distinct from a serial bond.
Select the option that matches the definition of a serial bond: A bond issue in which portions of the principal mature at regular intervals over a period of time.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations