Match These Terms with Their Definitions

question 128

Multiple Choice

Match these terms with their definitions.
-Occurs when a bond is issued for an amount that is less than the principal.

• A)Bond
• B)Contract, coupon, stated rate
• C)Discount
• D)Effective interest rate method
• E)Face value, par value, principal
• F)Interest amortization
• G)Lease
• H)Lessee
• I)Lessor
• J)Leverage
• K)Long-term debt
• L)Market rate, yield
• M)Maturity
• N)Premium
• O)Straight-line method

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Definitions:

Accounts Payable

Short-term liabilities or debts a company owes to its creditors for goods and services purchased on credit.

Inventory

The total stock of goods or materials a company holds for the purpose of resale or production.

CCA Depreciation

Capital Cost Allowance, a system in Canada that determines how a business can claim depreciation on tangible capital assets for tax purposes.

FIFO

"First In, First Out," an accounting method for valuing inventory where the oldest items are sold first.