Match Each Term with the Appropriate Definition

question 211

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Straight-line method of amortization

• A)Liquid assets divided by current liabilities.
• B)A calculation that determines what some future payments are worth today.
• C)The ability to pay current obligations.
• D)These are liabilities that have to be paid in one year or less.
• E)A bond feature that puts a creditor ahead of other creditors in order of payment.
• F)Net income before taxes and interest expense divided by interest expense.
• G)Where interest expense is the market interest rate times the bond's carrying value.
• H)Current liabilities divided by current assets.
• I)These are liabilities that do not have to be paid within the upcoming year.
• J)Net income after taxes and interest expense divided by interest expense.
• K)Spreads a bond discount or premium evenly over the lifetime of the bond.
• L)The amount of all the liabilities currently on the balance sheet at the close of the period.

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Definitions:

Lump-sum Merit

A one-time merit payment awarded to an employee instead of a permanent salary increase.

Base Salaries

The initial rate of compensation given to an employee, not including any extra benefits, bonuses, or raises, which serves as a foundational income.

Merit Raise

An increase in salary given to an employee based on their job performance, as a reward for their contributions to the organization.

Base Wage

The initial rate of compensation an employee receives, excluding overtime, bonuses, or other additional payments.