Solved

Match the Following Definitions with the Proper Terms

Question 113

Matching

Match the following definitions with the proper terms.

Premises:
Unsecured bonds backed only by a corporation's general credit.
The amount the company must pay for the bond when it is called.
Bonds issued at one time but payable over a period of time.
The excess of the face value over the price received by a company for bonds.
Bonds for which property is pledged to secure the bondholders' claims.
The contractual interest specified on the bond.
Bonds issued to a party whose name is listed in the corporation's records.
Using borrowed funds to earn a profit greater than the interest paid on borrowing.
The excess of the price paid over the face value of a bond.
The interest rate a corporation is willing to pay and investors will accept.
Responses:
call price
debentures
discount on bonds payable
face interest rate
leveraging
market interest rate
premium on bonds payable
registered bonds
secured bonds
serial bonds

Correct Answer:

Unsecured bonds backed only by a corporation's general credit.
The amount the company must pay for the bond when it is called.
Bonds issued at one time but payable over a period of time.
The excess of the face value over the price received by a company for bonds.
Bonds for which property is pledged to secure the bondholders' claims.
The contractual interest specified on the bond.
Bonds issued to a party whose name is listed in the corporation's records.
Using borrowed funds to earn a profit greater than the interest paid on borrowing.
The excess of the price paid over the face value of a bond.
The interest rate a corporation is willing to pay and investors will accept.
Related Questions

Q104: Dweeb Industries decided to appropriate $40,000 of

Q105: Lee Corporation has 10-year, 12% bonds payable

Q106: What is the early retirement of bonds?

Q107: Compare convertible and callable bonds by listing

Q108: Morris Corporation has 10-year, 12% bonds Payable

Q109: The adjusting entry for Barstow Corporation on

Q110: Twee Corporation creates a bond sinking fund

Q111: Why would a company include a call

Q112: Trog Industries pays and records the semiannual

Q114: Match the following definitions with the proper

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents