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 Bonds | Bonds made payable come whoever holds castle (the bearer); likewise called unregistered bonds. |
| Bond | Written 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 Certificate | Document containing shortcut specifics such together issuer"s name, bond par value, contract interest rate, and maturity date. |
| Bond Indenture | Contract between the bond issuer and also the bondholders; identifies the parties" rights and obligations. |
| Callable Bonds | Bonds that provide the issuer the alternative to retire them in ~ a proclaimed amount prior to maturity. |
| Capital Leases | Long-term leases in i beg your pardon the lessor transfers considerably all risk and rewards of property to the lessee. |
| Carrying worth of Bonds | Net 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 Rate | Interest 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 Bonds | Bonds the bondholders can exchange for a set variety of the issuer"s shares. |
| Coupon Bonds | Bonds 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 Payable | Difference 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 Method | Allocates 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 Note | Liability inquiry a series of regular payments come the lender. |
| Lease | Contract point out the rental of property. |
| Market Rate | Interest price borrowers space willing to pay and also lenders space willing to expropriate for a specific debt commitment given its risk level. |
| Mortgage | Legal 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 Financing | Acquisition of heritage by agreeing come liabilities no reported on the balance sheet. |
| Operating Leases | Short-term (or cancelable) leases in i m sorry the lessor maintain risks and also rewards that ownership. |
| Par worth of a Bond | Amount 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 Plan | Contractual 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 Liabilities | Ratio the the publication value the a company"s pledged assets come the publication value of its secured liabilities. |
| Premium top top Bonds | Difference 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 Bonds | Bonds owned by investor whose names and also addresses are taped by the issuer; attention payments are made to the registered owners. |
| Secured Bonds | Bonds that have specific assets the the issuer pledged together collateral. |
| Serial Bonds | Bonds consisting of separate amounts that maturation at various dates. |
| Sinking money Bonds | Bonds that require the issuer to make deposits to a different account; bondholders are repaid at maturity from that account. |
| Straight-Line Method | Method allocation an equal amount of shortcut interest expense to each period in the life the bonds. |
| Term Bonds | Bonds booked for payment (maturity) in ~ a single specified date. See more: Edible Root Like A Yam - List Of Root Vegetables |
| Unsecured Bonds | Bonds backed only by the issuer"s credit transaction standing; practically always riskier 보다 secured bonds; also called debentures. |
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