A Subsidiary Ledger Is

question 107

Multiple Choice

A subsidiary ledger is:

• A)an accounting journal designed to record a specific type of transaction.
• B)a created list of the accounts used by a business entity to define each class of items for which cash is spent or received.
• C)a complete record of business transactions recorded in a ledger over the life of a company.
• D)a record of accounts that provide supporting details on individual balances, the total of which appears in a general ledger account.

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Definitions:

Callable Bond

A callable bond is a type of bond that gives the issuer the right to repay the bond before its maturity date.

Call Provision

A clause in a bond or other fixed-income instrument that allows the issuer to repurchase and retire the debt before the scheduled maturity date.

Coupon Rate

The interest a bond pays each year, quantified as a percentage of its face value.

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, expressed as a percentage of the bond's face value.