Choose the appropriate letter to match the term and the definition.Not all definitions will be used.
Term
1._____ Accrued liability
2._____ Loan covenant
3._____ Issue price
4._____ Face value
5._____ Line of credit
6._____ Public debt offering
7._____ Security
8._____ Contingent liability
9._____ Debt-to-assets ratio
Definition
A.Bond features that allow the issuer to repay the loan early.
B.A prearranged agreement that allows a company to borrow at will up to a limit.
C.This item is reported as a contra asset account.
D.The amount that the lender actually pays for a bond.
E.The cost of issuing a bond.
F.Debt features that,if violated,allow the lender to revise loan terms.
G.The total amount of money that a company owes in debt.
H.The amount a company must repay creditors when a bond matures.
I.These are liabilities that have been incurred during the period but not yet paid.
J.When a company borrows money by issuing bonds in the financial markets.
K.A bond feature that allows a creditor to seize assets if debt is not properly repaid.
L.This type of liability is uncertain; it exists only if some other condition occurs.
M.Total liabilities divided by total assets.
Correct Answer:
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2.F
3....
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