Word Scramble for...
If you have difficulty answering the following questions, learn more about this topic by reading our Explanation of Bonds Payable.
|1.||Bond __________ usually occurs every six months.||TESIETNR||INTEREST|
|2.||A bond's principal comes due on the bond's ____________ date.||TAUYMTIR||MATURITY|
|3.||A bond is reported on the issuer's balance sheet as a __________.||YLIBTILAI||LIABILITY|
|4.||A bond that is not secured by property.||ERTBNUEDE||DEBENTURE|
|5.||If a bond is issued for less than its face value, ________ on Bonds Payable is recorded.||USITODNC||DISCOUNT|
|6.||If a bond is issued for more than its face value, ___________ on Bonds Payable is recorded.||MUIRMPE||PREMIUM|
|7.||The market interest rate and the yield-to-maturity should be the same as the __________ interest rate.||FCEEFEIVT||EFFECTIVE|
|8.||A bond __________ fund is an asset restricted for the retirement of bonds.||GISNNIK||SINKING|
|9.||Bonds maturing on a single date are referred to as _______ bonds.||ETMR||TERM|
|10.||The _________________ of the premium on bonds payable will reduce interest expense.||NOZRMITAAOTI||AMORTIZATION|
|11.||The legal document that provides details about a bond.||TRUDENINE||INDENTURE|
|12.||Interest on bonds is usually paid __________________.||ALIMEYLUNASN||SEMIANNUALLY|
|13.||Bondholders' claims will come ahead of the claims of ___________________ if a corporation is liquidated.||DOTSCROSKLEH||STOCKHOLDERS|
|14.||If bonds are sold between interest dates, the buyer will pay the seller any _________ interest.||RECDUAC||ACCRUED|
|15.||A bond sinking fund is reported in this section of the balance sheet.||MSTENVINEST||INVESTMENTS|
|16.||The amortization of _________ on Bonds Payable will result in more bond interest expense than the cash amount of interest paid.||STUDIONC||DISCOUNT|
|17.||__________ on Bonds Payable will cause the carrying value of the bonds to be greater than the face value.||MIMEPUR||PREMIUM|
|18.||In present value terms, a bond's interest payments form an ordinary __________.||INTAYUN||ANNUITY|
|19.||Most bonds are __________ by the issuing corporation at a price specified in the bond's indenture.||LLACEALB||CALLABLE|
|20.||When the amount of amortization of discount or premium on bonds payable is the same amount each year, it is referred to as ______________-line amortization.||HRITATGS||STRAIGHT|
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