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Accounting Chapter 11-13
Accounting
18
Accounting
Undergraduate 1
12/09/2013

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Term
Bond Premium
Definition
Excess of a bonds issue price over its maturity value.
Term
Face Value
Definition
The amount a barrower must pay back to the bondholders on the maturity date. Also called par value, principal amount, or maturity value.
Term
Serial Bonds
Definition
Bonds that principal in installments
Term
Bond Discount
Definition
Excess of a bonds maturity value over its issue price
Term
Term Bonds
Definition
Bonds that all mature at the same time
Term
Par Value
Definition
Arbitrary amount assigned by a company to a share of its stock
Term
Stated Interest Rate
Definition
Interest rate that determines the amount of cash interest the borrower pays and the investor receives each year
Term
Issue Price
Definition
The price the stock initially sells for the first time it is sold
Term
Market Interest Rate
Definition
Interest rate that investors demand in order to loan their money
Term
Preferred Stock
Definition
Stock which gives shareholders certain preferences and advantages over common stock
Term
Stock Certificate
Definition
Paper evidencing ownership in a corporation
Term
Stock Split
Definition
An increase in the number of issued and outstanding shares of stock coupled with a proportionate reduction in the par value of the stock
Term
Stock Dividend
Definition
A distribution by a corporation of its own stock to its stockholders
Term
Treasury Stock
Definition
A corporations own stock that it has previously issued and later reaquired
Term
Income from Discontinued Operations
Definition
Income or loss from segments of the business that have been sold or terminated
Term
Operating Income
Definition
Income or loss generated from the normal operations of the business
Term
Extraordinary Item
Definition
A gain or loss that is both unusual for the company and infrequent
Term
Limited Liability
Definition
Liabilities of the corporation cannot be extended to the personal assets of the shareholders
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