Match the Term and the Definition

question 51

Short Answer

Match the term and the definition.Not all definitions will be used.
_____ Current liabilities
_____ Effective interest method of amortization
_____ Security
_____ Times interest earned ratio
_____ Stated interest rate
_____ Seniority
_____ Long-term liabilities
_____ Liquidity
_____ Quick ratio
_____ Contingent liability
A.A bond feature that puts a creditor ahead of other creditors in order of payment.
B.Current liabilities divided by current assets.
C.These are liabilities that have to be paid in one year or less.
D.Net income before taxes and interest expense divided by interest expense.
E.The percent of assets that are in cash.
F.The amount of all the liabilities currently on the balance sheet at the close of the period.
G.A bond feature that requires the borrower to carry insurance on debt.
H.Where interest expense is the market interest rate times the bond's carrying value.
I.Net income after taxes and interest expense divided by interest expense.
J.These are liabilities that do not have to be paid within the upcoming year.
K.The ability to pay current obligations.
L.A bond feature that allows a creditor to seize assets if debt is not properly repaid.
M.Also known as the yield of a bond.
N.This type of liability is uncertain; it exists only if some other condition occurs.
O.Liquid assets divided by current liabilities.
P.Where interest expense is the stated interest rate times the bond's carrying value.
Q.A method by which companies pay off bonds in order of age.
R.Also known as the contract rate of a bond.

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Definitions:

Annual Staff Picnic

A yearly organized gathering for employees to socialize and relax outside of the work environment.

Discharged

Released from a hospital or medical care, indicating that the patient no longer requires in-patient care.

Bipolar Disorder

Bipolar Disorder is a mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).