Which of the following bonds are backed only by the borrowers promise to pay?

Debentures

Secured bonds

Mortgage bonds

Discount on Bonds Payable is a contra account to Bonds Payable. True or false?

The _____________________________________________ method divides a bond discount into equal amounts over the bonds term, resulting in the same amount of interest expense for each interest period.

Part VII: Account for bonds payable and interest expense with effective interest amortization

The ____________________________________ method is the most theoretically correct method of amortizing bond discount and premium because it recognizes the impact that the _________________________________________ has on interest expense recognized each interest payment period.

When bonds are issued at a discount, the discount is allocated to _________________________ through amortization over the term of the bonds.

Part VIII: Account for other features of bonds payable

To accrue interest for a partial-period, you simply use the interest expense amount from the amortization table that you created. True or false?

Corporate bonds that can be converted into the issuing companys stock are called _______________________ or ________________________________.

Part IX: Describe other long-term liabilities

A lease that transfers ownership of the asset to the lessee by the end of the lease term considered a finance lease. True or false?