Match the Definitions with the Appropriate Terms. Definition

question 119

Short Answer

Match the definitions with the appropriate terms. Definition
A. The issue price of the bond.
B. A cash fund set up to retire bonds.
C. The theoretically correct approach to amortizing bond discount or premium.
D. Involves repayment of the bond in instalments.
E. The bond contract containing legal provisions relating to the bond.
F. None of the above.
Term
____ 1. Equipment trust bond
____ 2. Effective-interest amortization method
____ 3. Current cash equivalent amount
____ 4. Serial bond
____ 5. Ordinary payment bond
6. Debenture
____ 7. Bond sinking fund
____ 8. Straight-line amortization method
____ 9. Indenture

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Definitions:

Sales Discount

A reduction in the price of goods or services offered by the seller to the buyer as an incentive for early payment.

Charge Customer

The act of billing a customer for goods or services provided, usually resulting in an accounts receivable entry for the business.

Tile Sales

Revenue generated from the sale of tiles, typically used for flooring or walls.

Contra-revenue Account

An account that is used to record deductions from gross revenue, which results in net revenue.