During the Year 2014, Diego Company Earned Revenues of $90,000

question 276

Multiple Choice

During the year 2014, Diego Company earned revenues of $90,000, had expenses of $50,000, purchased assets with a cost of $10,000 and paid dividends of $6,000. Net income for the year is

• A) $90,000.
• B) $40,000.
• C) $34,000.
• D) $30,000.

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Definitions:

Coupon Rate

The interest rate on a bond that the issuer promises to pay to the bondholder until maturity.

Premium

The amount by which the price of something, especially a financial security, exceeds its principal or face value.

Interest Rates

The cost of borrowing money or the return on investment for savings, usually expressed as a percentage of the principal amount on an annual basis.

Bond Prices

The market price at which a bond is traded, influenced by interest rates, credit ratings, and the bond's term to maturity.