Match Each Term with the Appropriate Definition

question 248

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Debt-to-assets ratio

• A)The total amount of money that a company owes in debt.
• B)This item is reported as a contra asset account.
• C)A bond feature that allows a creditor to seize assets if debt is not properly repaid.
• D)A prearranged agreement that allows a company to borrow at will up to a limit.
• E)The amount that the lender actually pays for a bond.
• F)The amount a company must repay creditors when a bond matures.
• G)When a company borrows money by issuing bonds in the financial markets.
• H)Debt features that,if violated,allow the lender to revise loan terms.
• I)The cost of issuing a bond.
• J)Total liabilities divided by total assets.
• K)Bond features that allow the issuer to repay the loan early.
• L)These are liabilities that have been incurred during the period but not yet paid.
• M)This type of liability is uncertain;it exists only if some other condition occurs.

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Definitions:

User Cost

The cost of using a durable good, including depreciation, interest lost by owning the good, and any maintenance expenses.

Extraction Costs

The expenses associated with the removal of raw materials from the earth or their separation from a mixture.

Total Costs

The entire sum of all expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Price Of Oil

The cost per barrel at which crude oil is bought and sold in the global market.