A Company's Balance Sheet Contained the Following Information Notes Payable Is the Only Other Item on the Balance

question 60

Multiple Choice

A company's balance sheet contained the following information: $\begin{array}{lrrr}\text { Common Stock } & \$ 24,000 & \text { Total Assets } & \$ 352,000 \\\text { Accounts Payable } & 128,000 & \text { Retained Earnings } & 56,000\end{array}$ Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

• A)$400,000.
• B)$16,000.
• C)$144,000.
• D)$688,000.

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Definitions:

Interest Paid

The amount of money paid over time for the use of borrowed funds.

Dividends Received

Payments received by an investor or a company from owning shares in another company.

Corporation Owns

Assets or property held by a corporation, which can include cash, inventory, equipment, and real estate.

Premium Or Discount

Refers to the amount by which the selling or purchase price of a financial instrument differs from its face value.