On June 30,Sugar Co

question 117

Multiple Choice

On June 30,Sugar Co.received a bill for $4,200 for running a newspaper ad in June.The bill will be paid in July.Which of the following statements is correct for June?

• A)Liabilities are decreased by $4,200.
• B)Assets are increased by $4,200.
• C)Expenses are increased by $4,200.
• D)Revenues are decreased by $4,200.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, often used in legal documents.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.