Match These Terms with Their Definitions

question 118

Multiple Choice

Match these terms with their definitions.
-liabilities that do not mature within one year

• A)bond
• B)contract, coupon, stated rate
• C)discount
• D)effective interest rate method
• E)face value, par value, principal
• F)interest amortization
• G)lease
• H)lessee
• I)lessor
• J)leverage
• K)long-term debt
• L)market rate, yield
• M)maturity
• N)premium
• O)straight-line method

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Definitions:

Replacement Decision

The evaluation process for determining whether to repair, maintain or replace an asset or piece of equipment.

Volume Of Operations

The scale or magnitude of the business activities that a company carries out in a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not be considered in new decision making.

Financing Costs

Expenses incurred by a company to finance its operations or to raise capital, such as interest payments on loans.