When Bonds Are Retired at Their Maturity Date,the Balance in the Bonds

question 195

Multiple Choice

When bonds are retired at their maturity date,the balance in the Bonds Payable account is equal to the bond's:

• A)face value minus any premium amortized.
• B)face value plus interest to be paid.
• C)face value plus any discount amortized.
• D)face value.

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Definitions:

Dividend Policy

A company's strategy for distributing profits back to its shareholders, which can include the timing, amount, and manner of dividend payments.

Dividend Income

Income received from owning shares in a company, typically paid out of the company's profits.

Capital Gains

The profit made from the sale of an asset, such as stocks or property, which exceeds its original purchase price.

Target Payout Ratio

The percentage of net income that a firm aims to pay out to its shareholders as dividends.