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

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

Financial Accounting

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

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Multiple Choice

Bonds are typically issued by which of the following entities?

Governments

Corporations

Only individuals

Both corporations and governments

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Verified step by step guidance

Understand the concept of bonds: Bonds are debt instruments issued by entities to raise funds. The issuer promises to pay back the principal amount along with interest over a specified period.

Identify the typical issuers of bonds: Bonds are commonly issued by governments and corporations. Governments issue bonds to fund public projects or manage national debt, while corporations issue bonds to finance business operations or expansion.

Clarify why individuals do not issue bonds: Individuals typically do not issue bonds because bonds are large-scale financial instruments requiring significant resources and regulatory compliance, which are beyond the scope of individual capabilities.

Recognize the correct answer: Both governments and corporations are entities that issue bonds, as they have the financial capacity and legal framework to do so.

Conclude the reasoning: The correct answer is 'Both corporations and governments,' as these are the primary entities that utilize bonds for raising capital.