Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.
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a. Accounts payable |
i. Registered bonds |
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b. Unearned revenue |
j. Contra liability |
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c. Debenture bond |
k. Proceeds |
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d. Long term debt |
l. Carrying value |
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e. Leverage |
m. Coupon bond |
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f. Bond payable |
n. Deferred tax liabilities |
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g. Bond indenture |
o. Consolidated financial statements |
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h. Trustee of bonds |
1. A bond for which the owner’s name and address are recorded by the issuer and/or trustee.
2. A liability arising from receipt of cash before the related revenue has been earned.
3. The agent who coordinates activities between the bond issuer and the investor in bonds.
4. A long term liability with a stated interest rate and maturity date, usually in denominations of $1,000.
5. The amount of cash received in a transaction.
6. A bond for which the owner’s name and address are not known by the issuer and/or trustee. Interest is received by clipping and submitting to the issuer interest coupons that are attached to the bond.
7. The use of borrowed money on which the interest cost is different from the rate of return on the investment of the borrowed funds.
8. A long term liability that arises because of timing differences in the recognition of items (principally depreciation expense) for book purposes and tax purposes.
9. An account that normally has a debit balance and that is subtracted from a related liability on the balance sheet.
10. A bond secured by the general credit of the issuer and not secured by specific assets.