Term
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Definition
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Term
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Definition
| the current value of an amount to be received in the future; a future amount discounted for compound interest |
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Term
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Definition
| a series of periodic cash receipts or payements that are equal in amount each interest period |
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Term
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Definition
| probable debts or obligations that result from past transactions, which will be paid with assets or services |
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Term
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Definition
| short-term obligations that will be paid within the current operating cycle or one year whichever is longer |
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Term
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Definition
| the ability to pay current obligations |
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Term
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Definition
| are expenses that have been incurred but have not been paid at the end of the accounting period |
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Term
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Definition
| is interest that is associated with the use of money over time |
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Term
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Definition
| revenues that have been collected but not earned; they are liabilities until the goods or services have been provided |
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Term
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Definition
| a potential liability that has arisen as the result of a past even; it is not an effective liability until some future event occurs. |
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Term
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Definition
| the dollar difference between total current assets and total current liabilities |
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Term
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Definition
| all of the entity's obligations not classified as current liabilities |
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Term
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Definition
| does not meet any of the four criteria established by GAAP and does not cause the recording of an asset and liability |
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Term
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Definition
| meets at least one of the four criteria established by GAAP and results in the recording of an asset and liability |
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Term
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Definition
| the current value of an amount to be received in the future; a future amount discounted for compound interest |
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Term
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Definition
| a series of periodic cash receipts or payments that are equal in amount each interest period |
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Term
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Definition
| the sum to which an amount will increase as the result of compound interest |
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Term
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Definition
| the amount payable at the maturity of the bond and on which the periodic cash interest payments are computed |
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Term
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Definition
| another name for bond principal, or the maturity amount of the bond |
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Term
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Definition
| the rate of cash interest per period stated in the bond contract |
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Term
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Definition
| an unsecured bond; no assets are specifically pledged to guarantee repayment |
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Term
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Definition
| may be called for early retirement at the option of the issuer |
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Term
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Definition
| may be converted to other securities of the issuer |
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Term
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Definition
| a bond contract that specifies the legal provisions of a bond issue |
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Term
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Definition
| the bond document that each bond holder receives |
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Term
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Definition
| an independent party appointed to represent the bondholders |
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Term
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Definition
| the stated rate of interest on bonds |
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Term
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Definition
| the current rate of interest on a debt when incurred |
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Term
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Definition
| the difference between the selling price and par when the bond is sold for more than par |
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Term
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Definition
| the difference between the selling price and par when the bond is sold for less than par |
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Term
| Straight-line Amortization |
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Definition
| a simplified method of amortizing a bond discount or premium that allocates an equal dollar amount to each interest period |
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Term
| Effective Interest Amortization |
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Definition
| a method of amortizing a bond discount or premium on the basis of the effective-interest rate; it is the theoretically preferred method |
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