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

One difference between bonds and bond funds is:

Bonds are always less risky than bond funds.

Bonds have a fixed maturity date, while bond funds do not have a set maturity date.

Bond funds pay interest directly to investors, while individual bonds do not pay interest.

Bond funds guarantee the return of principal at maturity, while individual bonds do not.

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Verified step by step guidance

Understand the key characteristics of bonds: Bonds are debt instruments issued by entities like corporations or governments. They have a fixed maturity date, meaning the principal amount is repaid to the bondholder at the end of the term. Bonds also pay periodic interest, known as coupon payments, to the bondholder.

Understand the key characteristics of bond funds: Bond funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of bonds. Unlike individual bonds, bond funds do not have a fixed maturity date, as the fund manager continuously buys and sells bonds within the portfolio.

Compare the maturity aspect: Bonds have a fixed maturity date, which provides certainty about when the principal will be repaid. Bond funds, on the other hand, do not have a set maturity date, as they are designed to be ongoing investments.

Analyze interest payments: Both bonds and bond funds pay interest, but the mechanism differs. Bonds pay interest directly to the bondholder through coupon payments. Bond funds distribute interest income to investors based on the fund's earnings from the bonds it holds.

Clarify misconceptions: Bond funds do not guarantee the return of principal at maturity, as they do not have a fixed maturity date. Individual bonds, however, do guarantee the return of principal at maturity, provided the issuer does not default.