Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 15

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.

a. Working capital loan	j. Mortgage bond
b. Maturity date	k. Collateral trust bond
c. Revolving line of credit	l. Serial bond
d. Straight interest	m. Callable
e. Discount interest	n. Call premium
f. Annual percentage rate (APR)	o. Convertible bond
g. Prime rate	p. Face amount of bond
h. Bond discount	q. Stated interest rate
i. Current maturities of long-term debt	r. Bond premium

_____A loan on which regular payments are to be made but which can be increased up to a predetermined limit as additional funds need to be borrowed.