Key terms from thing 10: reporting and assessing Long-Term liabilities from gaue won Accounting, information for decisions by john J. Wild. McGraw-Hill, 2005.

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Series of equal payments at same intervals.
Bearer BondsBonds made payable come whoever holds castle (the bearer); likewise called unregistered bonds.
BondWritten promise to pay the bond"s par (or face) value and interest in ~ a stated contract rate; regularly issued in denominations the $1,000.
Bond CertificateDocument containing shortcut specifics such together issuer"s name, bond par value, contract interest rate, and maturity date.
Bond IndentureContract between the bond issuer and also the bondholders; identifies the parties" rights and obligations.
Callable BondsBonds that provide the issuer the alternative to retire them in ~ a proclaimed amount prior to maturity.
Capital LeasesLong-term leases in i beg your pardon the lessor transfers considerably all risk and rewards of property to the lessee.
Carrying worth of BondsNet amount at which bonds room reported ~ above the balance sheet; amounts to the par worth of the binding less any type of unamortized discount or plus any kind of unamortized premium; also called carrying amount or book value.
Contract RateInterest price specified in a shortcut indenture (or note); multiplied by the par worth to determine the attention paid every period; also called coupon rate, stated rate, or in the name rate.
Convertible BondsBonds the bondholders can exchange for a set variety of the issuer"s shares.
Coupon BondsBonds with interest coupons attached to your certificates; bondholders detach coupons as soon as they mature and present them come a bank or broker because that collection.
Discount on bonds PayableDifference between a bond"s par value and its lower concern price or carrying value; occurs as soon as the contract rate is less than the industry rate.
Effective attention MethodAllocates interest price over the bond life to yield a constant rate that interest; interest expense for a period is found by multiplying the balance the the legal responsibility at the start of the period by the bond market rate in ~ issuance; additionally called interest method.
Installment NoteLiability inquiry a series of regular payments come the lender.
LeaseContract point out the rental of property.
Market RateInterest price borrowers space willing to pay and also lenders space willing to expropriate for a specific debt commitment given its risk level.
MortgageLegal loan covenant that protects a lender by offering the lender the right to be payment from the cash proceeds indigenous the revenue of a borrower"s assets identified in the mortgage.
Off-Balance-Sheet FinancingAcquisition of heritage by agreeing come liabilities no reported on the balance sheet.
Operating LeasesShort-term (or cancelable) leases in i m sorry the lessor maintain risks and also rewards that ownership.
Par worth of a BondAmount the link issuer agrees to pay at maturity and also the amount on i beg your pardon cash attention payments room based; likewise called confront amount or confront value.
Pension PlanContractual agreement between an employer and also its employees for the employer to carry out benefits to employee after they retire; expensed as soon as incurred.
Pledged Assets to Secured LiabilitiesRatio the the publication value the a company"s pledged assets come the publication value of its secured liabilities.
Premium top top BondsDifference between a bond"s par value and also its greater carrying value; occurs when the contract rate is greater than the sector rate; also called shortcut premium.
Registered BondsBonds owned by investor whose names and also addresses are taped by the issuer; attention payments are made to the registered owners.
Secured BondsBonds that have specific assets the the issuer pledged together collateral.
Serial BondsBonds consisting of separate amounts that maturation at various dates.
Sinking money BondsBonds that require the issuer to make deposits to a different account; bondholders are repaid at maturity from that account.
Straight-Line MethodMethod allocation an equal amount of shortcut interest expense to each period in the life the bonds.
Term BondsBonds booked for payment (maturity) in ~ a single specified date.

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Unsecured BondsBonds backed only by the issuer"s credit transaction standing; practically always riskier 보다 secured bonds; also called debentures.