Chapter+10+practice+quiz+with+answers-2 - Vocabulary Quiz...

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Vocabulary Quiz Name _____________________ Date _____________ Chapter 10 1. A legal document that indicates the name of the issuer, the face value of the bonds, and such other data as the contractual interest rate and maturity date of the bonds. 2. The difference between the selling price and face value of bond when a bond is sold for more than its face value. 3. Rate used to determine the amount of interest the borrower pays and the investor receives. 4. A measure of a company’s solvency, calculated by dividing income before interest expense and taxes by interest expense. 5. Events with uncertain outcomes, such as a potential liability that may become an actual liability sometime in the future. 6. A method amortizing the same amount of bond discount or bond premium to each interest period. 7. The difference between the face value of a bond and its selling price when a bond is sold for less than its face value. 8.
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This note was uploaded on 01/18/2012 for the course ACCT 207 taught by Professor Hudchinson during the Fall '08 term at University of Delaware.

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Chapter+10+practice+quiz+with+answers-2 - Vocabulary Quiz...

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