Matching
Match the items below
Premises:
A contractual arrangement which is in effect a purchase of property.
A legal document that sets forth the terms of a bond issue.
Occurs when the contractual interest rate is less than the market interest rate.
Produces a periodic interest expense equal to a constant percentage of the carrying value of the bonds.
A solvency measure that indicates the percentage of assets provided by creditors.
A form of interest-bearing notes payable used by corporations.
Occurs when the contractual interest rate is greater than the market interest rate.
Unsecured bonds issued against the general credit of the borrower.
A contractual arrangement that gives the lessee temporary use of property.
Produces a periodic interest expense that is the same amount each interest period.
Responses:
Bonds
Debenture bonds
Bond indenture
Premium on bonds payable
Discount on bonds payable
Effective-interest method of amortization
Straight-line method of amortization
Operating lease
Debt to assets ratio
Capital lease
Correct Answer:
Premises:
Responses:
A contractual arrangement which is in effect a purchase of property.
A legal document that sets forth the terms of a bond issue.
Occurs when the contractual interest rate is less than the market interest rate.
Produces a periodic interest expense equal to a constant percentage of the carrying value of the bonds.
A solvency measure that indicates the percentage of assets provided by creditors.
A form of interest-bearing notes payable used by corporations.
Occurs when the contractual interest rate is greater than the market interest rate.
Unsecured bonds issued against the general credit of the borrower.
A contractual arrangement that gives the lessee temporary use of property.
Produces a periodic interest expense that is the same amount each interest period.
Premises:
A contractual arrangement which is in effect a purchase of property.
A legal document that sets forth the terms of a bond issue.
Occurs when the contractual interest rate is less than the market interest rate.
Produces a periodic interest expense equal to a constant percentage of the carrying value of the bonds.
A solvency measure that indicates the percentage of assets provided by creditors.
A form of interest-bearing notes payable used by corporations.
Occurs when the contractual interest rate is greater than the market interest rate.
Unsecured bonds issued against the general credit of the borrower.
A contractual arrangement that gives the lessee temporary use of property.
Produces a periodic interest expense that is the same amount each interest period.
Responses:
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