The Most Common Type of Corporate Bond, Except in the Railroad

question 105

Multiple Choice

The most common type of corporate bond, except in the railroad and public utility industries, that carries no special collateral and the borrower issues it on the general credit of the business is called a

• A)sinking fund bond.
• B)serial funded bond.
• C)debenture bond.
• D)convertible bond.
• E)zero coupon bond.

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Definitions:

Predetermined Overhead Rate

A rate determined prior to the start of a period, designed for assigning anticipated overhead expenses to products or job orders, utilizing a selected activity basis for calculation.

Manufacturing Overhead

Costs in the manufacturing process that are not direct labor or materials.

Direct Labor-Hours

A measure of the labor directly involved in manufacturing a product, expressed in hours.

Predetermined Overhead Rate

A pre-determined rate for distributing overhead expenses to products or job orders, calculated prior to the beginning of the period using projected costs and estimated levels of activity.