When a bond sells at a discount, do you pay more or less than the face value of the bond? Why might a bond sell at a discount?
FINANCIAL ACCOUNTING 101 Accounting: Systematic presentation and interpretation of financial information. 1. Financial acct: for people outside the business. Limited detail 2. Managerial acct: for people inside the business. Much detail Fin acct: 1. Financial statements* (worth 10 points on every exam) a. Balance sheet: formal statement of the assets, liabilities, and equity for one day. b. Income statement: formal statement of revenue, costs of merchandise sold, and expenses for a period of time. c. Cash flow statement: formal statement of the sources and uses of cash from operations, investments, and finance activities for a period of time. Cash flow: cash only (no credit cards/credit.