Matching
Match the term and the definition.Not all definitions will be used.
Premises:
Stated interest rate
Effective interest method of amortization
Times interest earned ratio
HST
Market interest rate
Contingent liability
Debt-to-Assets ratio
Current liabilities
Discount
Long-term liabilities
Responses:
Net income after taxes and interest expense divided by interest expense.
These are liabilities that do not have to be paid within the upcoming year.
Net income before taxes and interest expense divided by interest expense.
Where interest expense is the market interest rate times the bond's carrying value.
A bond feature that requires the borrower to carry insurance on debt.
A bond feature that allows a creditor to seize assets if debt is not properly repaid.
The ability to pay current obligations.
When a bond is issued at a price below its face value.
Harmonized sales tax charged in certain provinces in Canada.
The amount of all the liabilities currently on the balance sheet at the close of the period.
Also known as the yield of a bond.
These are liabilities that have to be paid in one year or less.
Current liabilities divided by current assets.
A bond feature that puts a creditor ahead of other creditors in order of payment.
The portion of total assets financed by debt.
Also known as the contract rate of a bond.
This type of liability is uncertain; it exists only if some other condition occurs.
Where bond discount or premium is amortized over the life of the bond and becomes part of interest expense.
Correct Answer:
Premises:
Responses:
Net income after taxes and interest expense divided by interest expense.
These are liabilities that do not have to be paid within the upcoming year.
Net income before taxes and interest expense divided by interest expense.
Where interest expense is the market interest rate times the bond's carrying value.
A bond feature that requires the borrower to carry insurance on debt.
A bond feature that allows a creditor to seize assets if debt is not properly repaid.
The ability to pay current obligations.
When a bond is issued at a price below its face value.
Harmonized sales tax charged in certain provinces in Canada.
The amount of all the liabilities currently on the balance sheet at the close of the period.
Also known as the yield of a bond.
These are liabilities that have to be paid in one year or less.
Current liabilities divided by current assets.
A bond feature that puts a creditor ahead of other creditors in order of payment.
The portion of total assets financed by debt.
Also known as the contract rate of a bond.
This type of liability is uncertain; it exists only if some other condition occurs.
Where bond discount or premium is amortized over the life of the bond and becomes part of interest expense.
Premises:
Net income after taxes and interest expense divided by interest expense.
These are liabilities that do not have to be paid within the upcoming year.
Net income before taxes and interest expense divided by interest expense.
Where interest expense is the market interest rate times the bond's carrying value.
A bond feature that requires the borrower to carry insurance on debt.
A bond feature that allows a creditor to seize assets if debt is not properly repaid.
The ability to pay current obligations.
When a bond is issued at a price below its face value.
Harmonized sales tax charged in certain provinces in Canada.
The amount of all the liabilities currently on the balance sheet at the close of the period.
Also known as the yield of a bond.
These are liabilities that have to be paid in one year or less.
Current liabilities divided by current assets.
A bond feature that puts a creditor ahead of other creditors in order of payment.
The portion of total assets financed by debt.
Also known as the contract rate of a bond.
This type of liability is uncertain; it exists only if some other condition occurs.
Where bond discount or premium is amortized over the life of the bond and becomes part of interest expense.
Responses:
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