The Feature in a Bond Indenture That Requires Systematic Retirement

question 70

Multiple Choice

The feature in a bond indenture that requires systematic retirement of the bond issue is a

• A) planned call provision.
• B) sinking fund provision.
• C) forced conversion provision.
• D) mandated redemption provision.

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Definitions:

General Ledger

The comprehensive set of accounts that records all financial transactions of a business, serving as the central repository of accounting data.

Subsidiary Ledger

A detailed ledger that provides a breakdown of information summarized in a controlling account in the general ledger.

Control Account

An account used in the general ledger to summarize the details of transactions recorded in subsidiary ledgers.

Subsidiary Ledger

A detailed ledger containing all the individual accounts related to a particular area, such as accounts receivable or accounts payable, which supports the totals recorded in the general ledger.