Final answer:
Corporate bonds issued by corporations often have a par value of $1,000 and can be either secured or unsecured. The first step in the accounting cycle is recording business transactions.
Step-by-step explanation:
Securities issued by corporations, usually with a par value of $1,000, which can be secured by assets or unsecured, are known as corporate bonds. This differentiates them from municipal bonds, which are issued by cities, or junk bonds, which are high-risk, high-interest corporate bonds. Convertible bonds, on the other hand, can be converted into a predetermined number of shares of the issuing company's stock.
The first step in the accounting cycle is to record business transactions. This step involves documenting the financial effects of business transactions as they occur in the journal entries, which forms the basis for all subsequent steps in the accounting cycle.