Corporate Finance Flashcards: Bonds, Debt Instruments & Financing Options

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(33)

What is a debt security used to obtain long-term financing, typically issued in denominations of $1,000?

What is the term for the difference between the selling price and the face amount of a bond sold for less than its face value?

Who is the party that buys a bond, acting as the lender or creditor?

What are assets pledged as security for a loan called?

What is an unsecured bond backed by the general credit of the issuing company known as?

What is the yield rate of bonds, equal to the market rate of interest on the day the bonds are sold?

What is the amount to be paid to the bondholder at bond maturity, used as the base for computing periodic cash interest payments?

What is the interest rate that remains constant over the life of the loan called?

What are obligations that require regular payments of principal and interest over the life of the loan known as?

Who is the party that issues the bond, acting as the borrower?

What is a pre-approved financing arrangement with a lending institution called, where a business can borrow money up to the approved limit by simply writing a check?

What is the interest rate currently available on a wide range of alternative investments with similar levels of risk?

What are bonds secured by specific identifiable assets called?

What are bonds that mature at specified intervals throughout the life of the total issue known as?

What is the rate of interest specified in the bond contract, used to calculate the amount of interest paid in cash at specified intervals over the life of the bond?

What is the method of amortization where equal amounts of the account being reduced are transferred to the appropriate expense account over the relevant time period?

What are bonds in an issue that mature on a specified date in the future called?

What is a balance sheet that distinguishes between current and non-current items known as?

What are obligations with amounts due that depend on events that will be resolved in the future called?

What is an account used to reduce the reported value of the liability to which it relates, such as subtracting the contra liability Discount on Notes Payable from Notes Payable?

What is an asset that will be converted to cash or consumed within one year or an operating cycle, whichever is longer?

What is an obligation due within one year or an operating cycle, whichever is longer?

What is the measure of liquidity calculated by dividing current assets by current liabilities?

What is the accounting presumption that a company will continue to operate indefinitely, justifying the reporting of assets and liabilities in the financial statements?

What are notes that require face value plus accrued interest to be paid at maturity called?

What are the advantages of bonds in relation to liability and over other forms of financing?

What is the ability to convert assets to cash quickly and meet short-term obligations called?

What is a liability represented by a legal document called a note that describes pertinent details such as principal amount, interest charges, maturity date, and collateral?

What is the process of converting cash into inventory, inventory into receivables, and receivables back to cash, which can be measured in days using financial statement data?

What is the amount of cash actually borrowed, to be repaid in the future with interest called?

What is the term for the amount of cash received, such as the principal amount borrowed on a discount note payable?

What is the ability of a business to pay liabilities in the long run called?

What are promises to correct deficiencies or dissatisfaction in quality, quantity, or performance of products or services sold?

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Corporate Finance Flashcards: Bonds, Debt Instruments & Financing Options

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