AB 116 WEEK 5 LEARNING ACTIVITY

AB 116 WEEK 5 Question 1 Match the items below by entering the appropriate code number in the space provided

 	Student Answer:	 	   : Serial bonds
   »   10 : Bonds that mature in installments
 			   : Debenture bonds
   »   12 : Unsecured bonds issued against the general credit of the borrower.
 		 	   : Bond indenture
   »   6 : A legal document that sets forth the terms of a bond issue.
 		 	   : Premium on bonds payable
   »   4 : Occurs when the contractual interest rate is greater than the market interest rate.
 		 	   : Discount on bonds payable
   »   8 : Occurs when the contractual interest rate is less than the market interest rate.
 			   : Effective-interest method of amortization	   »   11 : Produces a periodic interest expense equal to a constant percentage of the carrying value of the bonds.
 			   : Straight-line method of amortization	   »   1 : Produces a periodic interest expense that is the same amount each interest period.
 			   : Bonds
   »   7 : A form of interest-bearing notes payable used by corporations.
 		 	   : Debt to total assets ratio
   »   3 : A solvency measure that indicates the percentage of assets provided by creditors.
 		 	   : Capital lease
   »   2 : A contractual arrangement that is in effect a purchase of property.
 		 	   : Operating lease
   »   9 : A contractual arrangement that gives the lessee temporary use of property.
 		 	   : Registered bonds
   »   5 : Bonds issued in the name of the owner.