Bonds: Bonds are the long-term liabilities. These liabilities are in the form of an interest-bearing note payable that are issued by the corporations and government agencies. These are the part of the common stock and are sold in denominations. Bonds are of many types and have many benefits. It is considered a very good option for investment.
Memo: Memo is a short note in writing, which gives a brief explanation of the given topic. The memo is used to provide information from one person to another and from one department to another.
To explain: With the help of a memo, (1) the advantages of the bonds over common stock financing, (2) the types of bonds to be issued, and (3) the issuing procedures used in the bond transactions.
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Accounting Principles, Volume 1: Chapters 1 - 12
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