The Following Key Terms from Chapter 6 Relate to Accounting

question 57

Short Answer

The following key terms from Chapter 6 relate to accounting for general long-term liabilities and debt service:
A.Legal defeasance
B.Regular serial bonds
C.In-substance defeasance
D.Irregular serial bonds
E.Debt limit
F.Annuity serial bonds
G.Debt margin
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1.A transaction in which cash or other assets are placed into an irrevocable trust for the benefit of debt holders
_____ 2. Bonds for which the amount of annual principal repayments is scheduled to increase each year by approximately the same amount that interest payments decrease
_____ 3. Bonds payable in which the total principal is repayable in a specified number of equal annual installments
_____ 4. The maximum amount of gross or net debt that is legally permitted
_____ 5. A transaction in which debt is legally satisfied based on certain provisions in the debt instrument even though the debt has not been repaid

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Definitions:

Sperm

Male reproductive cells or gametes in sexually reproducing organisms, designed to fertilize female eggs.

Sexual Characteristics

Physical or behavioral traits of an organism that differentiate between males and females, often involved in reproductive processes.

Erections

A physiological response in which erectile tissues, primarily in the penis, become engorged with blood, leading to increased rigidity and size.

Gametes

Gametes are the cells used during sexual reproduction to produce a new individual, typically having half the chromosome number of other cells.