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What is the advantage of issuing bonds instead of stock
What is the advantage of issuing bonds instead of stock? Definition of Bonds. Bonds payable are a form of long-term debt, which include a formal agreement to pay interest semiannually and the principal amount at maturity. The interest is an expense that reduces the corporation's earnings and its taxable income.
What is a cash discount? | AccountingCoach
Definition of Cash Discount A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount. The sellers and providers offering a cash
Market Interest Rates and Bond Prices | AccountingCoach
When Market Interest Rates Decrease. Market interest rates are likely to decrease when there is a slowdown in economic activity. In other words, the loss of purchasing power due to inflation is reduced and therefore the risk of owning a bond is reduced.
What is the difference between dividends and interest
What is the difference between dividends and interest expense? Dividends are a distribution of a corporation's earnings to its stockholders. Dividends are not an expense of the corporation and, therefore, dividends do not reduce the corporation's net income or its taxable income. When a dividend of $100,000 is declared and paid, the corporation's cash is reduced by $100,000 and its retained