The Date When the Principal of a Bond Is Returned

question 5

True/False

The date when the principal of a bond is returned to the investor is called the maturity date.

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Definitions:

Debit Side

The left side of an accounting ledger, where debit entries are recorded, typically indicating increases in assets or expenses, or decreases in liabilities or revenues.

Account

An accounting form used to record the increases and decreases in each financial statement item.

Stockholders' Equity

The portion of the capital of a company that belongs to the shareholders; it represents the residual assets of a company after debts and liabilities have been settled.

Debit Balance

The sum remaining in an account after all debts have been subtracted from the total credits, indicating an excess of debits over credits.