A Financial Penalty Scaled Both to the Defendant's Ability to Pay

question 32

Multiple Choice

A financial penalty scaled both to the defendant's ability to pay and the seriousness of the offense is called a:

• A) bond.
• B) bail.
• C) parole.
• D) day fine.

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Definitions:

Long-Term Liability

A financial obligation due after more than one year.

Current Liability

Short-term financial obligations that are due within one year or within a company's operational cycle, whichever is longer.

Long-Term Debt

Borrowings and financial obligations of a business or organization that are due for repayment more than one year in the future.

Discounted Note

A financial instrument, such as a promissory note, that is sold or bought at less than its face value. The discount represents the interest or fees earned by the buyer of the note.