Debt That May Be Extinguished Before Maturity Is Referred to As

question 38

Multiple Choice

Debt that may be extinguished before maturity is referred to as:

• A) sinking-fund debt.
• B) debentures.
• C) callable debt.
• D) indenture debt.
• E) None of these.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, usually as an incentive for prompt payment.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with the agreement to pay at a later date, typically invoiced by the seller.

Prompt Payment

The act of settling a financial obligation on or before its due date.

Sales Returns

Transactions involving the return of sold goods from the customer to the seller, often resulting in a refund or credit.