A Bond with a Face Value of $20,000,000 and a Quoted

question 174

Multiple Choice

A bond with a face value of $20,000,000 and a quoted price of 97½ has a selling price of

• A) $19,410,000
• B) $19,500,000
• C) $20,000,000
• D) $20,500,000

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Definitions:

LIFO

An accounting method for valuing inventory that assumes the most recently acquired items are sold first, with costs of older inventory used for valuation.

Ending Inventory Balance

The value of unsold goods that a company holds at the end of an accounting period.

Cost Of Goods Sold

The total direct expenses related to producing goods sold by a business.

Net Income

The profit a company has after deducting all its expenses from its total revenue.