A Callable Bond

question 127

Multiple Choice

A callable bond

• A)must be retired from a sinking fund maintained by the bond issuer.
• B)may be retired at a specified price at the option of the bond purchaser.
• C)may be reacquired by the issuing company at a specified price.
• D)are registered with an agent to insure correct payment of bond interest amounts.
• E)are convertible into common stock at par values.

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Definitions:

Cost of Merchandise Sold

The total expense incurred by a business to sell goods over a period, including the cost of acquiring or manufacturing those goods.

Account Form

The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and Liabilities and Owner’s Equity sections on the right side.

Merchandising Business

A type of business that purchases goods and resells them to consumers without changing their form, primarily making profit through the retail or wholesale of products.

Service Business

A business that provides intangible products or services to customers rather than physical goods.