EXERCISE 10-14
Purpose: (L.O. 1 thru 11) This exercise will quiz you about terminology used in this chapter.
Bearer (coupon) bonds | Long-term liabilities |
Bond certificate | Market interest rate |
Bond indenture | Mortgage bond |
Bonds | Mortgage note payable |
Callable bonds | Notes payable |
Contractual interest rate | Premium (on a bond) |
Convertible bonds | Registered bonds |
Current liabilities | Secured bonds |
Current ratio | Serial bonds |
Debenture bonds | Sinking fund bonds |
Debt to total assets ratio | **Straight-line method of amortization |
Discount (on a bond) | Term bonds |
*Effective-interest method | Times interest earned ratio |
of amortization | Unsecured bonds |
*Effective-interest rate | Working capital |
Face value (par value) |
Instructions
For each item below, enter in the blank the term that is described.
- ____________________________________ Obligations expected to be paid more than one year in the future.
- ____________________________________ Bonds not registered.
- ____________________________________ A form of interest bearing notes payable issued by corporations, universities, and governmental entities.
- ____________________________________ Bonds issued in the name of the owner.
- ____________________________________ Bonds that are subject to call and retirement at a stated dollar amount prior to maturity at the option of the issuer.
- ____________________________________ Bonds that permit bondholders to convert them into common stock at their option.
- ____________________________________ ...
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