Describe the two distinct obligations incurred by a corporation when issuing bonds.

Explain the three key variables that distinguish bonds,compare the advantages and disadvantages of owningbonds, and list the major types of bonds.

Government debt securities are issued by Whose obligations are they?

:A dicount on bonds payable .Occurs when a corporation issues bonds with a stated rate more than the market rate A O .Occurs when a corporation issues bonds with a stated rate less than the market rate .B O .Is reported under the equity section on the balance sheet.C .Is a contra-asset account.D

a bond is a liability of the issuing company and a share of stock represents ownership in the company

Define each of the following terms:a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond

A bond backed by tangible (real) assets is known as a O a. debenture O b. U.S. government bond c. general obligation municipal bond d. mortgage bond e. subordinated debenture

When are corporations likely to call their bonds?

2. The printing costs and accounting/legal fees associated with the issuance of bonds should: (A) Be expensed when incurred. (B) Be reported as a deduction from the face amount of the bonds payable on the balance sheet. (C) Be accumulated in a deferred charge account (unamortized asset) and amortized to expense over the life of the bonds. (D) Be recorded as an expense all in the year the bonds mature or are retired. (E) None of the above.

Demonstrate how to identify and account for debt investments classified for reporting purposes as available-for-sale securities.