Various Transactions May Change the Amount and Composition of the Assets

question 156

Short Answer

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

---

Definitions:

Issue Price

The price at which new or existing securities are offered for sale to the public.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal (face value), reflecting higher-than-market interest rates or low risk.

Par Value

A nominal value assigned to a security by the issuer, which may or may not reflect its actual market value.

Issue Price

The price at which new shares are offered to the public or bonds are sold, which may be above or below the par value.