Listed Below Are Several Terms and Phrases Associated with Long-Term

question 139

Multiple Choice

Listed below are several terms and phrases associated with long-term debt. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.
-Present value of interest plus present value of principal

• A)No specific assets pledged
• B)Legal, accounting, printing
• C)Protection against falling rates
• D)Bond price
• E)Backed by a lien
• F)May become stock
• G)Interest expense
• H)Checks are mailed directly
• I)Name of owner not registered
• J)Premium
• K)Discount
• L)Periodic cash payments
• M)Straight-line method
• N)Liquidation payments after other claims satisfied
• O)Bond indenture

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Definitions:

Production Budget

An estimate of the total units that must be produced in a given period to meet sales demands and ending inventory requirements.

Selling Expense Budget

A financial plan that estimates the anticipated selling expenses for a period, including costs related to sales personnel, advertising, and marketing activities.

Sales Commissions

Payments made to sales employees, usually calculated as a percentage of the sales they generate.

Advertising Expense

The cost incurred by a business to promote its products, services, or brand in various media channels.