Refer to the Following List of Liability Balances at December

question 66

Multiple Choice

Refer to the following list of liability balances at December 31, 2017. What is the total amount of long-term liabilities?

• A) $49,000
• B) $109,000
• C) $100,000
• D) $40,000

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, representing the value at which it is issued.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends.

Cumulative

Refers to the total amount accumulated over a period of time, often used to describe amounts of money or measurements that build up until a specific point is reached.

Par Value

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