22-23 Acctg 2 Unit 3

a long-term promise to pay a specified amount on a specified date and to pay interest at stated intervals

• bond

• bond issue

• bond sinking fund

• debt capital

ABC, Incorporated issued 10-year ______ for $1000 at a 5% interest rate.

• bond issue

• bonds

• sinking fund

• corporation

all bonds representing the total amount of the loan

• equity captial

• bond sinking fun

• bond issue

• par value

The total __________ was for $500,000.00 for the restaurant expansion.

• equity capital

• bond

• bond sinking fund

• bond issue

the amount set aside to pay a bond issue when it comes due

• bond

• bond sinking fund

• debt capital

• bond issue

The Bakery Restaurant, Inc. deposited $50,000.00 each year to the ____________so that they had funds available to pay the loan at the end of ten years.

• par value

• bond

• bond issue

• bond sinking fund

money that a company borrows and agrees to pay back to the lender at a later date

• treasury stock

• stated value

• debt capital

• par value

Loans and bonds are two types of ____________ that are commonly used by corporations.

• treasury stock

• debt capital

• stated value

• trustee

money that a company generates by selling shares of company stock

• equity capital

• par value

• stated value

• bond issue

ABC, Incorporated decided to sell more preferred stock to raise _________ for their expansion project.

• equity capital

• stated value

• treasury stock

• trustee