Chapter 9 Flashcards
Long-Term Liabilities
1
Q
Internal Financing
A
profits generated by the corporation
2
Q
External Financing
A
profits generated OUTSIDE of the corp
3
Q
Debt Financing
A
borrowing $ from creditors
4
Q
Equity Financing
A
obtaining investment from stockholders
5
Q
Secured Bonds
A
backed by collateral
6
Q
Unsecured Bonds
A
not backed bu collateral
7
Q
Term Bondsq
A
issues return on specific single date
8
Q
Serial Bonds
A
issue returns in installments
9
Q
Callable Bonds
A
borrower can pay of bonds early
10
Q
Convertible Bonds
A
can be converted into common stock
11
Q
Stated Interest Rate
A
the rate quoted in the bond contract
12
Q
Bonds issued at Discount
A
stated < market
13
Q
Bonds issued at FV
A
stated = market
14
Q
Bonds issued at Premium
A
stated > market
15
Q
Interest Expense =
A
carrying value for bond x market interest rate per period
