During February 2022, Its First Month of Operations, the Owner

question 177

Multiple Choice

During February 2022, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000.Schwenn had cash sales of $20,000 and paid expenses of $35,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28, 2022?

• A)$15,000 credit
• B)$85,000 debit
• C)$120,000 debit
• D)$65,000 credit

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Definitions:

Yield To Maturity

The expected total yield on a bond, assuming it is kept until maturity, encompassing all the interest earnings plus the return of the principal.

Forward Rate

The agreed-upon price for a financial transaction to be executed at a future date, used particularly in currency and interest rate markets.

2-year Bond

A debt security that matures in two years and typically offers periodic interest payments.

Stripped Treasuries

Securities derived from U.S. Treasury bonds by separating the coupons from the principal, allowing them to be sold separately as zero-coupon bonds.