Compensation Given to an Executive If He or She Is

question 39

True/False

Compensation given to an executive if he or she is forced to leave an organization is called a golden parachute.

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Definitions:

Retired

Indicates assets taken out of service or policies terminated.

Unamortized Discount

The portion of the bond discount that has not yet been expensed in the income statement over the bond's life.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price or adjusted basis, could be positive (gain) or negative (loss).

Bonds

Fixed income investment products that represent loans made by an investor to a borrower, typically corporate or governmental, which pays interest over a set period until maturity.