A Bond with a Face Value of $1,000 That Sells

question 19

Multiple Choice

A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a ________ bond.

• A)par
• B)discount
• C)premium
• D)zero coupon
• E)floating rate

---

Definitions:

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Anticipated Cash Inflow

Expected or forecasted cash receipts from operations, investments, and financing activities within a future period.

Credit Sales

Transactions where goods or services are sold and payment is deferred, resulting in accounts receivable for the seller until the buyer pays at a later date.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, crucial for managing liquidity and financing needs.