Term
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Definition
| Bonds made payable to whoever holds them (the bearer); also called unregistered bonds |
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Term
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| Contract between the bond issuer and the bondholders' identifies the parties' rights and obligations |
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| Bonds that give the issuer the option to retire them at a stated amount prior to maturity |
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| Net amount at which bonds are reproted on the balance sheet; equals the par value of the bonds less any unamortized discount or plus any unamortized premium; also called carrying amount or book value |
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Term
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Definition
| Interest rate specified in a bond indenture (or note); multiplied by the par value to determine the interest paid each period; also called coupon rate, state rate, or nominal rate |
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Definition
| Bonds that bondholders can exchange for a set number of the issuer's shares |
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| Bonds with interest coupons attached to their certificates; bondholders detach coupons when they mature and present the to a bank or broker for collection |
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Term
| Discount on Bonds Payable |
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Definition
| Difference between a bond's par value and its lower issue price or carrying value; occurs when the contract rate is less than the market rate |
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Term
| Effective Interest Method |
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Definition
| Allocates interest expense over the bond life to yield a constant rate of interest; interest expense for aperiod is found by multiplying the balance of the liability at the beinning of the period by the bond market rate at issuance; also called interest method |
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Definition
| Liability requiring a series of periodic payments to the lender |
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Term
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Definition
| Interest rate that borrowers are willing to pay and lenders are willing to accept for a specific lending agreement given the borrowers risk level |
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Definition
| Difference between a bond's par value and its higher carrying value; occurs when the contract rate is higher than the market rate; also called bond premium |
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Term
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Definition
| Bonds that have specific assets of the issuer pledged as collateral |
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Term
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Definition
| Bonds consisting of separate amounts that mature at different dates |
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Term
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Definition
| Bonds that require the issuer to make deposits to a separate account; bondholders are repaid at maturity from that account |
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Term
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Definition
| Method allocating an equal amount of bond interest expense to each period of the bond life |
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Term
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Definition
| Bonds scheduled for payment at a sing specified date |
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Term
| Unsecured Bonds (DebNeture) |
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Definition
| Bonds backed only by the issuer's credit standing; almost always riskier than secured bonds; also called debentures |
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Term
| Available-for-sale Securities |
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Definition
| Investments in debt and equity securities that are not classified as trading securities or held-to-maturity securities |
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Term
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Definition
| Financial statements that show all activities under the parent's control, including those of any subsidiaries |
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Term
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Definition
| Accounting method used for long-term investments when the investor has "significant influence" over the investee |
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Term
| Equity Securities with Controlling Interest |
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Definition
| Long-term investment when the investor is able to exter controlling influence over the investee; investors owning 50% or more of stock are presumed to exert controlling influence |
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Term
| Equity Securities with Significant Influence |
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Definition
| Long-term investment when the investor is able to exert significant influence over the investee; investors owning 20 percent or more (buy less than 50 percent) of voting stock are presumed to exert significant influence |
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Term
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Definition
| Price of one currency stated in terms of another currency |
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Term
| Held-to-maturity Securities |
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Definition
| Debt securities that a company has he intent and ability to hold until they mature |
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Term
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Definition
| Long-term assets not used in operating activities such as notes receivable and investments in stocks and bonds |
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Term
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Definition
| Company that owns a controlling interest in a corporation (requires more than 50% of voting stock) |
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Term
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Definition
| Ratio reflecting operating efficieny; defined as net income divided by average total assets for the period; also called return on assets or return on investment |
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Term
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Definition
| Debt and equity securities that management expects to convert to cash within the next 3 to 12 months (or the operating cycle if longer); also called temporary investments or marketable securities |
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Term
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Definition
| Entity controlled by another entity (parent) in which the parent owns more than 50% of the subsidiary's voting stock |
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Term
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Definition
| Investments in debt and equity securities that the company intends to actively trade for profit |
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Term
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Definition
| Gain not yet realized by an actual transaction or event such as a sale |
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Term
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Definition
| Loss not yet realized by an actual transaction or event such as a sale |
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