[Imi]

Hi. I am studying with roger and for some reason, I am having hard time understanding bonds. I am so stressed that I want to skip this part, but not sure if I should do that

Any tips or advice on how to study for it? Does it get heavily tested?

[vbmer]

Bonds isn't heavily tested, but like everything else on FAR, you should know at least the basics. I would focus on the key terminology, calculating bond present value, bond issuance, amortization, and the associated journal entries. Warrants and other special situations are safer to skip if you're so inclined.

[Biff Tannen]

I studied bonds until I was completely miserable, then I got 0 questions over bonds on my actual exam. What a bummer

[Imi]

Thank you. I would just keep doing MCQs and learn the basics atleast.

[AndreA]

Learn the basics. I spent a lot time learning Bonds, NP, Pensions and all difficult calculations -> was useless in my case.

[Silent]

I had task bond simulation. They can test you on anything so skipping any topic is gamble

[CPAHOPE]

Bonds can be little complicated. I actually learned more about bonds when i was learning about how to prepare indirect operating cash flow statement. For instance, when you issue bonds at a discount, journal entries for interest expense will be recorded as follows
Dr Interest expense
Cr discount, cash

Since its issued at a discount, the cash payment on interest will be lower than the interest expense and this should make sense intuitively. Since interest expense is larger than cash interest payment the difference will be added to indirect operating cash flow statement This is something that i didnt catch last time i took the test i should pass next time

[CPAHOPE]

Lets say you do become a CPA n someone ask you can you explain how bond market works n you dont know how to answer that question you will definitely feel embarrassed. As a CPA, we should definitely know more than the general public.

[Author]

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