Sweeney, Inc

question 84

Multiple Choice

Sweeney, Inc. borrowed $30,000 from the bank by signing a 9-month note payable. The proper accounting treatment of recording the note will

• A)increase assets and liabilities.
• B)decrease assets and increase liabilities.
• C)increase liabilities and owners' equity.
• D)increase assets and decrease owners' equity.

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Definitions:

Required Return

Required Return is the minimum rate of return an investor expects to receive from an investment considering its risk level.

Yield To Maturity

The total return expected on a bond if it is held until the maturity date, considering all payments from the bond including coupon and principal repayment.

Coupon

The interest rate paid every year on a bond, presented as a percentage of its par value.

Maturity

The period until the final payment date of a loan, bond, or other financial instrument.