Embers Corporation Orders Twelve Fire Extinguishers from Firefighting Equipment Inc

question 39

Multiple Choice

Embers Corporation orders twelve fire extinguishers from Firefighting Equipment Inc., which delivers the goods. This is most likely

• A) a gift.
• B) a lease of goods.
• C) a sale of goods.
• D) a contract for services.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Annual Coupon

The total interest to be paid on a bond each year, divided between regular payment periods.

Bonds

Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, where the borrower agrees to pay back the principal plus interest at a specified date.