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:

Dominant

Exerting power or influence over others; often used to describe a company or country in a position of authority within its field or region.

Warranty of Title

A guarantee provided by a seller to a buyer that the seller has the right to sell the property and that there are no undisclosed liens, claims, or encumbrances against it.

Good and Valid

A legal term indicating that a document, agreement, or transaction is legally sound and effectively in place.

Inconsistent Warranties

Warranties that offer conflicting guarantees or statements about a product, leading to confusion about coverage.