Match Each Definition with the Correct Term Below

question 28

Short Answer

Match each definition with the correct term below.
a.
A security that represents money that a corporation borrows from the investing public.
b.
A long-term debt secured by real property.
c.
Bonds that are issued in the name of the bondholder.
d.
The method of bond amortization that uses a constant interest rate each period to amortize the bond premium or discount.
e.
Bonds that do not require periodic interest payments but instead promise to pay a fixed amount at the maturity date.
f.
The excess of the face value over the issue price of a bond.
g.
A contract that requires a company to pay benefits to its employees after they retire.
h.
The excess of the issue price over the face value of a bond.
i.
A liability or an asset that results from using different methods to calculate income taxes on the income statement and income tax liability on the income tax return.
j.
The method of bond amortization that equalizes amortization of a bond discount or premium for each interest period over the life of the bond.
-Registered bonds

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Definitions:

Auction With Reserve

A type of auction in which the seller reserves the right to accept or reject the highest bid.

Auction Without Reserve

An auction in which the item for sale will be sold regardless of the price, as there is no minimum bid or reserve price.

Open Price Term

In a contract, a provision that allows the price to be determined later based on agreed criteria or market conditions.

Finance Lease

A type of lease in which it is assumed that the lessee will use the leased asset for a significant portion of its useful life, and the lease payments cover the full cost of the asset along with providing a return to the lessor.