Matching
Match the term and the definition.Not all definitions will be used.
Premises:
Deferred Revenue
Premium
Face value
Yield
Loan covenant
Accrued liability
Public debt offering
Issue price
Line of credit
Responses:
Also known as the market interest rate.
The amount that the lender actually pays for a bond.
Also known as the stated interest rate on a bond.
The amount a company must repay creditors when a bond matures.
These are liabilities that are overdue for payment.
The value of this type of lease is recorded as a contra-asset account.
Bond features that allow the issuer to repay the loan early under certain conditions.
The amount by which a bond's issue price exceeds its face value.
When cash is received before the company provides goods or services to customers.
The current market value of a bond if the current holder sells it to a third party.
A prearranged agreement that allows a company to borrow at will up to a limit.
The total amount of money that a company owes in debt.
These are liabilities that have been incurred during the period but not yet paid.
Bond features that,if violated,allow the lender to demand repayment.
The cost of issuing a bond.
This type of lease goes unrecorded on the balance sheet.
When a company borrows money by issuing bonds in the financial markets.
Correct Answer:
Premises:
Responses:
Also known as the market interest rate.
The amount that the lender actually pays for a bond.
Also known as the stated interest rate on a bond.
The amount a company must repay creditors when a bond matures.
These are liabilities that are overdue for payment.
The value of this type of lease is recorded as a contra-asset account.
Bond features that allow the issuer to repay the loan early under certain conditions.
The amount by which a bond's issue price exceeds its face value.
When cash is received before the company provides goods or services to customers.
The current market value of a bond if the current holder sells it to a third party.
A prearranged agreement that allows a company to borrow at will up to a limit.
The total amount of money that a company owes in debt.
These are liabilities that have been incurred during the period but not yet paid.
Bond features that,if violated,allow the lender to demand repayment.
The cost of issuing a bond.
This type of lease goes unrecorded on the balance sheet.
When a company borrows money by issuing bonds in the financial markets.
Premises:
Also known as the market interest rate.
The amount that the lender actually pays for a bond.
Also known as the stated interest rate on a bond.
The amount a company must repay creditors when a bond matures.
These are liabilities that are overdue for payment.
The value of this type of lease is recorded as a contra-asset account.
Bond features that allow the issuer to repay the loan early under certain conditions.
The amount by which a bond's issue price exceeds its face value.
When cash is received before the company provides goods or services to customers.
The current market value of a bond if the current holder sells it to a third party.
A prearranged agreement that allows a company to borrow at will up to a limit.
The total amount of money that a company owes in debt.
These are liabilities that have been incurred during the period but not yet paid.
Bond features that,if violated,allow the lender to demand repayment.
The cost of issuing a bond.
This type of lease goes unrecorded on the balance sheet.
When a company borrows money by issuing bonds in the financial markets.
Responses:
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