ACC 400 Course Great Wisdom / tutorialrank.com ACC 400 Course Great Wisdom / tutorialrank.com | Page 25

2. H 7. G 12. M

3. E 8. F 13. L

4. A 9. C 14. N

5. K 10. I

PART IV — MATCHING 3 points each (30 points) Match the items
below by entering the appropriate code letter in the space provided. A.
Serial bonds F. Current ratio B. Debenture bonds G. Straight-line
method of amortization C. Bond indenture H. Times interest earned
ratio D. Market interest rate I. Callable bonds E. Discount on bonds
payable J. Maturity date ____ 1. Bonds subject to retirement at a
stated dollar amount prior to maturity. ____ 2. A legal document that
sets forth the terms of a bond issue. ____ 3. Bonds that mature in
installments. ____ 4. A measure of a company’s short-term liquidity.
____ 5. The time that the final payment on a bond is due from the
bond issuer. ____ 6. A measure of a company’s solvency. ____ 7. The
rate investors demand for loaning funds to a corporation. ____ 8.
Unsecured bonds issued against the general credit of the borrower.
____ 9. Occurs when the contractual rate of
interest is less than the market rate of interest. ____ 10. Produces a
periodic interest expense that is the same amount each interest period.
1. I 6. H
2. C 7. D
3. A 8. B