A Payment of a Portion of Accounts Payable Will

question 28

Multiple Choice

A payment of a portion of accounts payable will

• A) decrease net earnings.
• B) not affect total assets.
• C) increase liabilities.
• D) not affect shareholders' equity.

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Definitions:

Coupon Bond

A type of bond that pays the holder periodic interest payments at a fixed rate (the coupon rate) before maturing, at which point the principal or face value is repaid.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments and the principal repayment.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.