Match the Terms Below with the Correct Definitions

question 54

Multiple Choice

Match the terms below with the correct definitions.
-The classification that helps to identify which of the firm's debts are paid over a comparatively long period

• A)Property and equipment
• B)Reversing entries
• C)Gross profit
• D)Current ratio
• E)Working capital
• F)Net income or net loss
• G)Net sales
• H)Income from operations
• I)Long-term liabilities
• J)Liquidity

---

Definitions:

Par Value

The stated value of a bond, stock share, or coupon as specified by the issuer.

Conversion Premium

The additional amount over the current value that an investor pays to convert a convertible security into a specified number of shares of common stock.

Conversion Ratio

The specific quantity of common shares an investor can receive for converting each unit of a convertible security, such as a convertible bond or preferred stock.

Par Value

The face value of a bond or stock, typically the amount that is paid back at maturity for bonds or a nominal dollar value assigned to shares of stock.