Silva Corporation Had the Following Accounts and Balances: If

question 100

Multiple Choice

Silva Corporation had the following accounts and balances: If Silva paid $10,000 of Accounts Payable in cash, total liabilities and stockholders' equity would be

• A)$90,000.
• B)$78,000.
• C)$80,000.
• D)$120,000.

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Definitions:

Discount

The reduction applied to the face value of a bond or the lower than market price of an asset.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Coupon Rate

The coupon rate is the annual interest rate paid by a bond relative to its face value, expressed as a percentage.