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58 Cards in this Set
- Front
- Back
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Debts or other obligations that will not be paid within one year.
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long-term liabilities
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The value today of $1 to be received or paid at some future date, given a specified interest rate.
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Present Value of $1
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The period of time for which interest is computed
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Compounding Period
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A series of equal amounts to be received or paid at the end of equal time intervals.
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Annuity
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The value today of a series of equally spaced, equal-amount payments to be made or received in the future given a specified interest rate.
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present value of an annuity
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A written promise to pay a stated amount of money at one or more specified future dates; certain assets, usually real estate, are pledged as collateral
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Mortgage Payable
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A schedule that shows the breakdown between interest and principal for each payment over the life of a mortgage.
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Mortgage Amortization Schedule
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A contract in which a borrower promises to pay a specified rate of interest to a lender for each period the bond is outstanding and repay the principal at the maturity date.
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Bond
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Bonds for which no collateral has been pledged
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Debentures (unsecured bonds)
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Bonds for which assets have been pledged in order to guarantee repayment.
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Secured Bonds
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Bonds for which the names and addresses of the bondholder are ke[t on file bu the issuing company.
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Registered Bonds
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Unregistered bonds for which owners receive periodic interest payments by clipping a coupon from the bond and sending it to the issuer as evidence of ownership.
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Coupon Bonds
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Bonds that mature in one single sum at a specified future date.
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Term Bonds
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Bonds that mature in a series of installments at specified future dates.
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Serial Bonds
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Bonds for which the issuer reserves the right to pay the obligation before its maturity date.
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Callable Bonds
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Bonds that can be traded for, or converted to, other securities after a specified period of time.
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Convertible Bonds
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Bonds issued with no promise of interest payments; only a single payment will be made.
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Zero-Coupon (deep discount) Bonds
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Bonds issued by companies in weak financial condition with large amounts of debt already outstanding; these bonds yield high rates of return because of the high risk.
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Junk Bonds
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A contract between a bond issuer and a bond purchaser that specifies the terms of a bond.
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Bond Indenture
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The amount that will be paid on a bond at the maturity date.
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Principal
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The date at which a bond principal or face amount becomes payable.
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Bond Maturity Date
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The actual interest rate earned or paid on a bond investment.
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Market rate (effective rate; yield rate) of interest
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The rate of interest printed on the bond.
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Stated Rate of Interest
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The difference between the face value and the sales price when bonds are sold below their face value.
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Bond Discount
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The difference between the face value and the sales price when bonds are sold above their face value.
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Bond Premium
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A measure of leverage, computed by dividing total liabilities by total assets
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Debt Ratio
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The number of dollars of borrowed funds for every dollar invested by owners; computed as total liabilities divided by total stockholders' equity.
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Debt-To-Equity Ratio
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A measure of a borrower's ability to make required interest payments; computed as income before interest and taxes divided by annual interest expense.
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Times Interest Earned
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A method of systematically writing off a bond discount or premium in equal amount each period until maturity.
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Straight-Line Amortization
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A method of systematically writing off a bond premium or discount that incorporates the time value of money and results in an equal interest rate for each period.
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Effective-Interest Amortization
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The face value of bonds minus the unamortized discount or plus the unamortized premium.
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Bond Carrying Value
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A business owned by one person,
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Proprietorship
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An association of two or more individuals or organizations to carry on economic study.
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Partnership
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An investment in which the proprietor or partners are responsible for all debts.
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Unlimited Liability
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A legal entity chartered by a state; ownership is represented by transferable shares of stock.
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Corporation
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The legal protection given stockholders whereby they are responsible for the debts and obligations of a corporation only to the extent of their capital contributions.
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Limited Liability
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A report provided to potential investors that represents a company's financial statements and explains its business plan, sources of financing, and significant risks.
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Prospectus
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Individuals or organizations that own a portion (shares of stock) of a corporation.
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Stockholders
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Individuals elected by the the stockholders to govern a corporation.
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Board of Directors.
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The most frequently issued class of stock; typically provides a voting right but is secondary to preferred stock in dividend and liquidation rights.
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Common Stock
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A class of stock that usually provides dividend and liquidation preferences over common stock.
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Preferred Stock
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Preferred stock that can be converted to common stock at a specified conversion rate.
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Convertible Preferred Stock
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A nominal value assigned to and printed on the face of each share of a corporation's stock.
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Par Value
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The portion of owners' equity contributed by investors (the owners) in exchange for shares of stock.
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Contributed Capital
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Issued stock that has subsequently been reacquired by the corporation.
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Treasury Stock
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The portion of a corporation's owners' equity that has been earned from profitable operations and not distributed to stockholders.
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Retained Earnings
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Distributions to the owners (stockholders) of a corporation.
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Dividends
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A cash distribution of earnings to stockholders.
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Cash Dividend
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The date selected by a corporation's board of directors on which the stockholders of record are identified as those who receive dividends.
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Date of Record
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The date on which a corporation pays dividends to its stockholders.
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Dividend Payment Date
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The date on which a corporation's board of directors formally decides to pay a dividend to stockholders.
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Declaration Date.
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The right of preferred stockholders to receive current dividends before common stockholders receive dividends.
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Current-Dividend Preference
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The right of preferred stockholders to receive current dividends plus all dividends in arrears before common stockholders receive any dividends.
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Cumulative-Dividend Preference
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Missed dividends for past years that preferred stockholders have a right to receive under the cumulative-dividend preference if and when dividends are declared.
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Dividends in Arrears.
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A measure of the percentage of earnings paid out in dividends; computed by dividing cash dividends by net income
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Dividend Payout Ratio
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Certain market-related gains and losses that are not included in the computation of net income; for example, foreign currency translation adjustments and unrealized gains or losses on investments.
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Accumulated other Comprehensive Income
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A statement outlining the changes in accumulated comprehensive income that arose during the period.
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Statement of comprehensive Income
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A financial statement that reports all changes in stockholders' equity.
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Statement of Stockholders' Equity
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