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EastWind [94]
3 years ago
13

A bond represents a debt for an organization. a. True b. False

Business
1 answer:
lilavasa [31]3 years ago
8 0

Answer:

a. True

Explanation:

An organization's capital is financed by the owners' funds known as equity or borrowed fund referred to as debt financing. An organization may borrow directly from lending institutions such as banks or can issue debt instruments through the financial markets. Bond is one of the debt instruments that companies issue to raise capital through financial markets.

A bond is an agreement between the bond issuer and the investor, where the issuer promises to pay the stated amount to the bondholder at the stated period. The investor buying the bond is equivalent to lending to the issuer. Bonds are a fixed income earner to the investors as they pay regular and fixed interest through their life. At maturity, the issuer pays the investor the maturity value of the bond.

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How would the issuance of common stock for cash affect the accounting​ equation?
shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

    To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect    + Increased

Therefore, the cash account and the common stock is increased.

3 0
3 years ago
Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In o
Zigmanuir [339]

Answer:

The scientist are looking to offer shares of stock to general public to raise some funds.

Explanation:

The seed scientist are looking to offer shares of stock of their company to genera public to raise some funds , so that they can expand the distribution of their product . Arborview plant science company will first time offer their shares to the public, so this process is called initial public offering and by doing this they will get funds from investor in return for part of ownership in the company.

3 0
3 years ago
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units
Vladimir79 [104]

Answer:

d. 1.25

Explanation:

In a business context, the capacity utilization rate is a value that allows the company know how well they are performing compared to what the recorded optimal levels are. In order to calculate this value we simply divide the current operating level for a specific time-period by the optimal level of that same time period, which in this case would be 1 hour. Therefore, in this case we would divide 500 by 400 which would give us 1.25.

6 0
3 years ago
Joanie is in her junior year of high school and is planning her future. Based on rent in her city and her new car payment, she n
Simora [160]

She needs a bachelor degree because an associate degree doesn't give her quite $800.

5 0
3 years ago
Danny is an associate with Valley Chartered Accounts in New York. Among various other work commitments, Danny has to file the ta
nika2105 [10]

Answer:

E. instrumental support

Explanation:

Instrumental support is generally the assistance or support an individual receives from their colleagues that is tangible.

Sam, Danny's colleague, observing his stressful situation and then volunteered to assist Danny in meeting the deadline is an example of an instrumental support.

7 0
3 years ago
Read 2 more answers
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