Ch 10 - A
To provide security to creditors and to reduce interest costs, bonds and notes payable can be secured by this.
What are mortgages?
Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as this.
Bonds that mature at different dates and end up with the total principal repaid gradually over a number of periods are referred to as this.
What are serial bonds?
The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter, are called this.
What are organization costs?
When all of the authorized shares have the same rights and characteristics, the stock is called this.
What is common stock?
Promissory notes that require the issuer to make a series of payments consisting of both interest and principal are called this.
What are installment notes?
These types of bonds have specific assets of the issuing company pledged as collateral.
Bonds with a par value of less than $1,000 are known as this.
What are baby bonds?
The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by the corporation is called this.
What is preemptive right?
Stockholders' equity consists of this.
What is contributed capital and retained earnings?
This is computed as the present value of all remaining future payments, discounted using the market rate of interest at the time of issuance.
What is the carrying value of a long-term note payable?
Bonds that have interest coupons attached to their certificates, which the bondholders detach during each interest period and present to a bank for collection, are called this.
What are coupon bonds?
This is an obligation requiring a series of payments to the lender.
What is an installment note?
Legal document that gives a designated agent of a stockholder the power to vote the stock.
What is a proxy?
Owners of preferred stock often do not have this.
What are voting rights?
Operating leases differ from capital leases in this way.
What is operating lease payments are generally greater than capital lease payments?
Bonds owned by investors whose names and addresses are recorded by the issuing company and for which interest payments are made with checks to the bondholders, are called this.
What are registered bonds?
This is a series of equal payments at equal time intervals.
What is an annuity?
The total amount of stock that a corporation's charter allows it to issue is referred to as this.
What is authorized stock?
The date the board of directors votes to pay a dividend is called this.
These bonds require the issuer to set aside assets in order to retire the bonds at maturity.
What are sinking fund bonds?
The contract between the bond issuer and the bondholders, which identifies the rights and obligations of the parties, is called this.
What is a bond indenture?
Concept that cash paid (or received) in the future has less value now than the same amount of cash paid (or received) today.
What is present value?
Par value of a stock refers to this.
What is the value assigned to a share of stock by the corporate charter?
A return of a part of the original investment back to the stockholders.
What is a liquidating dividend?