Identify and describe the principal kinds of debt securities.

Q: Define revenue bonds

A: Answer: A revenue bond is also regarded as a municipal bond that is sponsored by specific individual…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: Explain Recording Bonds at Issuance.

A: Bond at issuance is recorded at: Par Premium Discount

Q: list and explain the most common sources of debt financing

A: When a business needs funds for working capital or for capital expenditures then, the business…

Q: What are the difference between debt and equity and explain how the bonds market operates.

A: Debt are instruments which are used to fund a company’s requirement. These instruments include bonds…

Q: Explain Collateralized debt obligations?

A: Collateralized debt obligations: A collateralized debt obligation (CDOs) is a portfolio of differing…

Q: debt instrument

A: A Bond is considered as DEBT  INSTRUMENT

Q: Distinguish the following financial markets. Provide examples of the type and/or nature of the…

A: Debt market is the market where loans are bought and sold. It is also called the bond market. Equity…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities.…

A: Debt securities are raised by the firm as debt in order to finance projects whereas, equity…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities. U.S.…

A: Debt securities: Debt securities are financial assets that entitle their owners to stream interest…

Q: Identify the underlying characteristics of debt instruments and describe the basic approach to…

A: Debt:   It refers to the money that is owed or due to outsiders by the organization.

Q: Explain why bonds are issued and identify the types of bonds?

A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the…

Q: what reporting categories are used to account for debt investments?

A:

Q: Explain how trading debt securities are accounted forand reported.

A: Trading securities: It refers to the buying and selling of short-term debt or equity securities to…

Q: Distinguish between the accounting treatment for marketable versus nonmarketable equity securities.

A:

Q: How to record purchase of a  debt investment? Give an example.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: At what amount should trading, available-for-sale, andheld-to-maturity debt securities be reported…

A:

Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…

A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…

Q: Where are debt investments classed as trading securities, available-for-sale securities, and…

A: Secured debt obligations: The borrowed money must be returned and has a specified amount, maturity…

Q: Explain principal (debt)

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: Discuss different types and characteristics of debt instruments with specific reference of Bonds.

A: Corporate bond- It is a bond issued by a company to fund its business operations, major expansions,…

Q: Explain Types of Debt Instruments

A: Answer: Debt instrument is like a tool a company may use in capital raising. It allows the holders…

Q: Define the term debt securities.

A: Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of…

Q: Describe the accounting for investments in debt ­securities.

A: Debt securities: A debt security is a type of investment tool in which the bonds are issued by a…

Q: Clearly explain the difference between debt securities market and equity securities market

A: Equity securities market is the place where equities of corporates are traded, i.e. purchased and…

Q: What is the structure of Collateralized debt obligation. Please explain in details

A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…

Q: Explain Collateralized Debt Obligations (CDOs)?

A: A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a…

Q: Explain the Debt Investments Classified as Trading Securities.

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Describe the basic methods of debt financing?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: Which costs are included in bond issuance costs? How are they recorded?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Describe the process to record a bond a face value, discount value and premium?

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: How to journalize the purchase of bonds.

A: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Describe reasons for invest in debt or equity securities.

A: Securities: These are the financial assets that are traded in the financial or secondary or…

Q: Demonstrate how to identify and account for debt investments classified forreporting purposes as…

A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: How is the purchase of held-to-maturity debt security at face value recorded?

A: Hold-to-maturity Debt:  These are the investment in debt securities, where the investor wishes to…

Q: Describe the nature of bonds and indicate the accounting for bond issuances.

A: Capital market:   A capital market is a place where the shares and bonds are traded. This helps a…

Q: Where on the asset side of the balance sheet are debtinvestments classified as trading securities,…

A:

Q: Distinguish between equity and debt securities.

A: Equity and debts are the most important forms for fund raising. Equity refers to the investment…

Q: What does the disclosure note for debt includes?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Determine the selling price of the bonds

A: The selling price of the bonds is the present value of the cash payments to be made during the life…

Q: Briefly describe the five specific types of debt and equity securities.

A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…

Types of Money Market Instruments