Some Bonds Mature in Installments

question 32

Multiple Choice

Some bonds mature in installments. If a bond issue contains this feature, they are known as:

• A) secured bonds.
• B) loan covenant bonds.
• C) callable bonds.
• D) serial bonds.

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Definitions:

Merchandise

Goods bought and sold by a business in the ordinary course of its trading activity.

Credit

An accounting entry that increases liabilities or equity or decreases assets, or an arrangement to receive cash, goods, or services now and pay for them in the future.

Credit Sales

Transactions where goods or services are sold to a customer with an agreement to pay at a later date.

Cash Collection

The process of receiving and processing payments from customers.