Match the Following Bond and Long-Term Liability Related Terms to the Appropriate

question 183

Multiple Choice

Match the following bond and long-term liability related terms to the appropriate definition.
-The excess of the issue price over the face value of bonds.It occurs when the face rate on the bonds exceeds the market rate.

• A)Long-term liability
• B)Face value
• C)Debenture bonds
• D)Serial bonds
• E)Callable bonds
• F)Face rate of interest
• G)Market rate of interest
• H)Bond issue price
• I)Premium
• J)Discount
• K)Effective interest method of amortization
• L)Carrying value
• M)Gain or loss on redemption

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Definitions:

Obscure Definition

A description or explanation that is not clear, difficult to understand, or not well known.

Abstract Terms

Words that represent concepts or ideas rather than tangible objects or actions, often subjective and open to interpretation.

Poetic Imagery

The use of vivid or figurative language to represent objects, actions, or ideas in literature, particularly in poetry, to evoke a mental image or sensory experience.

Circular Definition

A way of defining a term where the definition includes the term itself, leading to a lack of clarity or actual explanation.