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22 Cards in this Set
- Front
- Back
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Obligation that derives from a contract |
Legal obligation |
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Is an obligayion that derives from an enterprised actions whereby an establishef pattern of past practicr, published policies etc |
Contructive obligation |
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Are not financial liabilities, rather are classified as equity |
Rights, options and warrants |
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Initially recognized at fv, which is the transaction price |
Financial liability |
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Is more theoretically sound because it results in separate recognition of finance cost that arises from non payment of the account within the discount |
Net method |
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Certificate of indebtedness whereby the borrower agrees to pay a sum of money at a specified future date plus periodic interest paymentd at the stated rate |
Bond |
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Resells the bonds to an investing public |
Underwriter |
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Contract between the issuing corporation and the bondholder is known as |
Bond indenture |
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Mature on a single date |
Term bond |
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Mature in installments |
Serial bonds |
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Provide security and protection to investors in the form of specific assets of the issue such as real estate or other collateral |
Secured bonds |
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Secured by a lien against a real estate |
Real estate mortgage bond |
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Is secured by shares of stockz and bonds held by the issuer as investments |
Collateral trust bond |
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Secured by a lien against movablr property like motor vehicles |
Chattel mortgage bond |
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Aka unsecured bonds |
Debentures |
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Nit protected by the pledge of any specific asset of the issuing corporation |
Debentures |
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Bonds whose ownerd names are registetes in the books of the issuing corporation |
Registered bonds |
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Not recorded in the name of the owner |
Bearer bonds |
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Those that give the issuing company the right to call or retire the bonds before maturity date |
Callable or redeemable bonds |
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Those that give the bondholders the right to exchange their bond holdings into specified or predeterminef number of issuing corporations shares of stock |
Convertible bonds |
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Aka deep discount bonds |
Zero interest bonds |
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Issue at significantly lower than their face value |
Zero interest bonds |
