Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 10-14

Purpose: (L.O. 1 thru 11) This exercise will quiz you about terminology used in this chapter.

Bearer (coupon) bonds	Long-term liabilities
Bond certificate	Market interest rate
Bond indenture	Mortgage bond
Bonds	Mortgage note payable
Callable bonds	Notes payable
Contractual interest rate	Premium (on a bond)
Convertible bonds	Registered bonds
Current liabilities	Secured bonds
Current ratio	Serial bonds
Debenture bonds	Sinking fund bonds
Debt to total assets ratio	**Straight-line method of amortization
Discount (on a bond)	Term bonds
*Effective-interest method	Times interest earned ratio
of amortization	Unsecured bonds
*Effective-interest rate	Working capital
Face value (par value)

Instructions

For each item below, enter in the blank the term that is described.

1. ____________________________________ Obligations expected to be paid more than one year in the future.
2. ____________________________________ Bonds not registered.
3. ____________________________________ A form of interest bearing notes payable issued by corporations, universities, and governmental entities.
4. ____________________________________ Bonds issued in the name of the owner.
5. ____________________________________ Bonds that are subject to call and retirement at a stated dollar amount prior to maturity at the option of the issuer.
6. ____________________________________ Bonds that permit bondholders to convert them into common stock at their option.
7. ____________________________________ ...