Which of the Following Statements Is True

question 14

Multiple Choice

Which of the following statements is true?

• A) A person who buys a bond always pays the face value for the bond.
• B) If a corporation issues a bond and Dennis buys it,Dennis becomes one of the owners of the corporation.
• C) A stockholder of Firm X is one of the owners of Firm X.
• D) The owner of the bond receives periodic payments equal to its coupon rate times the price he paid for the bond.

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Definitions:

Payroll Records

Documentation related to employees’ salaries, wages, bonuses, net pay, and deductions, essential for financial and legal purposes.

FICA Taxes Payable

The portion of FICA taxes that an employer needs to remit to the government, representing withheld employee taxes and the employer's contributions.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, often considered an operating expense.

Federal Income Taxes Payable

The amount of income tax a company or individual owes to the federal government, which is due within the tax filing period.