LongTerm Liabilities Bonds Payable Name MATCHING Instruction

Long-Term Liabilities: Bonds Payable Name MATCHING Instructions: A list of terms and related statements appear below. From the list of terms, select the one that relates to each statement. Print its identifying letter in the space provided. Not all terms may be used and some terms may be used more than once. F. Future value G. Effective interest method H. Market rate I. Present value J. Registered bonds K. Secured bonds L. Serial bonds M. Straight-line method N. Term bonds O. Zero-coupon bonds A. Bearer bonds Bond indenture C. Bonds B.Contract rate Debenture bonds 1. When all bonds of an issue mature at the same time, the bonds are called (2). 2. The interest rate specified in the bond indenture. 3. A form of interest-bearing note issued by corporations on a long-term basis. 4.d Unsecured bonds issued on the basis of the general credit of the corporation. 5. A contract with bondholders. 6. This concept states that the amount of cash to be received at some date in the future is not the equivalent of the same amount of cash held at an earlier date. The amount that will accumulate at some future date as a result of an investment or a series of investments. 7. The method of amortization of bond premium and discount which provides for amount of interest. S. Bonds that do not provide for any interest payments. Bonds that give bondholders a claim on specific assets in case the issuing corporation fails meet its liabilities on the bonds. 10.

Solution

Solution 1:

When all the bonds of an issue matures at the same time, the bonds are called \"Term Bonds\". (i.e. option N)

Solution 2:

The interest rate specified in the bond indenture is \"Contract rate\". (i.e. option D)

Solution 3:

A form of interest Bearing Note issued by corporations on a long term basis is \"Bonds\".(i.e. option C)

Solution 4:

Unsecured bonds issued on the basis of general credit of corporation are \"Debenture Bonds\". (i.e. option E)

Solution 5:

A contract between bondholders is \"Bond Indenture\". (i.e. Option B).

Solution 6:

\"Present value\" Concept states that the amount of cash to be received at some date in the future is not equivalent of the same amount of cash held at an ealier date. (i.e. option I)

Solution 7:

The amount that will accumulate at some future date as a result of an investment or a series of investment is \"Future Value\". (i.e. option F)

Solution 8:

The method of amortization of bond premium and discount which provides for a constant amount of interest is \"Straight-line method\" (i.e. option M)

Solution 9:

Bonds that do not provide for any interest payments are \"Zero- coupon bonds\". (i.e. option O)

Solution 10:

Bonds that give bondholders a claim on specific assets in case the issuing corporation fails to meet its liabilities on the bonds are \"Secured Bonds\". (i.e. Option K)