Accounting Terminology
Listed Below Are Nine Technical Accounting Terms Introduced

question 61

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:
$$\begin{array} { | l | l | l | } \hline \text { Postretirement benefits expense } & \text { Deferred income taxes } & \text { Interest coverage ratio } \\\hline \text { Operating lease } & \text { Maturity value } & \text { Loss contingency } \\\hline \text { Capital lease } & \text { Applying leverage } & \text { Estimated liability } \\\hline\end{array}$$
Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
____ (a) Operating income divided by annual interest expense.
____ (b) The amount paid during the current period to retired employees.
____ c) A lease agreement that is viewed as equivalent to the lessee purchasing the leased asset.
____ (d) Using borrowed money to finance business operations.
____ (e) The risk of a loss occurring in a future period.
____ (f) A permanent reduction in the amount of income taxes owed which results from the tax deductions for depreciation.
____ (g) The amount that must be paid to settle a liability at the date it becomes due.

---

Definitions:

Morpheme

The smallest unit of meaning in the words of a language.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another, such as the difference between the sounds /p/ and /b/.

Particular Sound

refers to a specific auditory stimulus or noise that is distinct or unique in its characteristics.

Cochlear Implant

A device that transforms sounds into electric pulses that directly stimulate the auditory nerve, bypassing the malfunctioning inner ear that ordinarily processes sound.