Match the Terms with the Definitions

question 71

Multiple Choice

Match the terms with the definitions.
-Bonds that give the holder the option of exchanging the bonds for capital stock of the corporation.

• A)amortization
• B)bond
• C)bond indenture
• D)bond sinking fund
• E)callable bonds
• F)carrying value
• G)convertible bonds
• H)coupon bonds
• I)debenture bonds
• J)discount
• K)face value
• L)market rate
• M)mortgage bonds
• N)premium
• O)principal
• P)registered bonds
• Q)secured bonds
• R)serial bonds
• S)stated rate
• T)term bonds

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Definitions:

Unit Sales

The quantity of products sold by a company, not accounting for any bulk, wholesale, or grouping discounts.

Margin of Safety

The difference between actual sales and the break-even point, indicating the amount by which sales can drop before a business incurs a loss.

Degree of Operating Leverage

Degree of operating leverage measures the sensitivity of a company's operating income to a change in sales volume, indicating the impact on profits from sales fluctuations.

Contribution Format Income Statement

An income statement format that separates variable costs from fixed costs, highlighting the contribution margin.