When the market rate is higher than a bond's stated (or contract) interest rate, the bond will trade at a discount relative to its par (or face) value.

When the market rate is lower than a bond's stated (or contracted) rate, the bond will trade at a premium over its par (or face) value.

When a bond is issued, the issuing company records a credit to Bonds Payable.

When a bond matures, the issuing company will record a debit to Bonds Payable.

When interest on a bond is paid, the Interest Expense account is debited.

When risk for a company increases, it's bond price will decrease.

When risk for a company increases, it's bond yield will increase.

As a firm's debt-to-equity ratio increases, its risk of default also increases.

If two bonds are issued at par, the bond with the higher risk should have a higher interest rate, all else equal.

Secured bonds tend to be less risky than unsecured bonds.

When the market rate is higher than a bond's stated (or contract) interest rate, the bond will trade at a premium over its par (or face) value.

When the market rate is lower than a bond's stated (or contract) rate, the bond will trade at a discount relative to its par (or face) value.

When a bond is issued, the issuing company records a debit to Bonds Payable.

When a bond matures, the issuing company will record a credit to Bonds Payable.

When interest on a bond is paid, the Interest Expense account is credited.

When risk for a company increases, it's bond price will increase.

When risk for a company increases, it's bond yield will decrease.

As a firm's debt-to-equity ratio increases, its risk of default also decreases.

If two bonds are issued at par, the bond with the higher risk should have a lower interest rate, all else equal.

Secured bonds tend to be more risky than unsecured bonds.

When disposing of equipment, equipment should be credited.

When disposing of equipment, accumulated depreciation should be debited.

A gain on sale occurs when the cash received for selling an asset is greater than its book value.

A loss on sale occurs when the cash received for selling an asset is less than its book value.

Depreciation expense should be recorded as a debit.

When accumulated depreciation increases, it is recorded as a credit.

Double-declining depreciation expense is greater in earlier periods, compared to later periods.

Double-declining depreciation expense is greater in early periods, compared to straight-line depreciation.

Amortization is like depreciation, but for intangible assets with a determinate useful life.

Impairment is like amortization, but for intangible assets with an indeterminate useful life.

When disposing of equipment, equipment should be debited.

When disposing of equipment, accumulated depreciation should be credited.

A gain on sale occurs when the cash received for selling an asset is less than its book value.

A loss on sale occurs when the cash received for selling an asset is greater than its book value.

Depreciation expense should be recorded as a credit.

When accumulated depreciation increases, it is recorded as a debit.

Double-declining depreciation expense is greater in later periods, compared to early periods.

Double-declining depreciation expense is greater in later periods, compared to straight-line depreciation.

Amortization is like depreciation, but for intangible assets with an indeterminate life.

Impairment is like amortization, but for intangible assets with a determinate useful life.

Fraud refers to deception that is intentional and caused by an employee or organization for personal gain.

Impairment refers to deception that is intentional and caused by an employee or organization for personal gain.

Weak internal controls such as poor separation of duties, lack of supervision, and poor documentation of processes give rise to opportunities for fraud.

Separation of duties can increase opportunities for fraud.

Mechanisms of corporate governance typically lead to greater economic efficiency in for-profit vs. nonprofit organizations.

The mechanisms of governance in for-profit organizations typically rely more on intrinsic motivation than in nonprofit organizations.

Corporations that focus on increasing long-term shareholder value generally contribute to economic growth.

Corporations that focus on increasing long-term shareholder value generally decrease socio-economic inequality.